US President Donald Trump finally signed the trade deal phase one with Chinese Vice Premier Liu He yesterday. Trump hailed that both countries are “righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families.” And the deal has “total and full enforceability.” On further tariff relieves, he added, “I will agree to take those tariffs off if we’re able to do phase two, otherwise we don’t have any cards to negotiate with.” Chinese President Xi Jinping said in a letter that the deal is “good for China, for the U.S. and for the whole world”. And, “in the next step, the two sides need to implement the agreement in earnest.”
Some core elements of the deal including an action plan for China to strengthen intellectual property protection within 30 days. The proposal would include “measures that China will take to implement its obligations” and “the date by which each measure will go into effect.” American companies will be ensured to work “without any force or pressure from the other Party to transfer their technology to persons of the other Party.” China will also increase purchases of US products by at least USD 200B over two years.
Questions remain on implementation of the deal even though Trade Representative Robert Lighthizer insisted there is a strong enforcement mechanism “with real teeth”. Some criticized that the enforcement mechanism is too simplistic, as it’s ultimately just a decision of one party pulling out.
