"US-China Phase 1 Agreement Includes $200 Billion Purchase of American Goods in 4 Sectors"

[Asia Economy Beijing=Special Correspondent Park Sun-mi] With the signing ceremony of the US-China Phase One trade agreement scheduled at the White House on the 15th, it has been reported that the trade agreement details include China’s large-scale purchase of US-made goods.

On the 14th, Hong Kong’s South China Morning Post (SCMP) and Politico, citing sources, reported that China has committed to purchasing US-made goods on a large scale, with a purchase volume of $200 billion over the next two years across four sectors.

Specifically, the purchase targets were set at $75 billion for manufactured finished products, $50 billion for energy, $40 billion for agriculture, and $35 to $40 billion for services.

The US has lifted the designation of China as a currency manipulator ahead of the Phase One trade agreement between the US and China.

On the afternoon of the 13th (local time), the US Treasury Department announced in its semi-annual currency report that it had removed China from the currency manipulator list. The US Treasury had previously designated China as a currency manipulator in August last year but reversed its position after five months, stating that none of the trade partners met the criteria for currency manipulation.

The signing ceremony for the US-China Phase One agreement is scheduled for the 15th. If Liu He, China’s Vice Premier leading the Chinese trade negotiation team, finalizes the Phase One trade agreement during this Washington visit, it will mark the first meaningful achievement in nearly two years of the trade war.

Vice Premier Liu has traveled to the US seven times over the past two years to resolve the US-China trade war. In terms of flight time, this amounts to 200 hours, and in distance, 145,000 km. Liu, who departed Beijing the day before, arrived in the US on the same day and is expected to participate in the Phase One agreement signing ceremony at the White House on the morning of the 15th. The details of the trade agreement are expected to be disclosed immediately after the signing ceremony.

China’s state-run Global Times evaluated that Liu He’s visit to the US is raising expectations that a true truce between the US and China is approaching, quoting Huo Jianguo, Vice Chairman of the China WTO Research Association, who said, “Basically, 99.9% of the agreement has been finalized. Only the signing remains.”

There is widespread optimism that this Phase One agreement will have a positive impact on the economic growth of both countries. The International Monetary Fund (IMF) assessed that after the signing of the Phase One agreement, China’s economic growth rate could rise from the current forecast of 5.8% to 6% this year. US Treasury Secretary Steven Mnuchin also cited the Phase One agreement as an important factor contributing to achieving the US’s economic growth target of 2.5% this year.