The United States and China have had a long-standing trade relationship that has been both cooperative and competitive. In 2018, the two nations reached a temporary truce in their trade war through a trade agreement signed by both parties. This agreement aimed to address several issues that had caused tension and disagreement between the two nations.
One of the key issues addressed by the agreement was the trade deficit. The United States had long been concerned about the trade imbalance between the two nations, with China exporting far more goods to the US than the US was exporting to China. As such, the agreement set a target for the two nations to work towards reducing the US-China trade deficit by $200 billion by 2020.
Another significant aspect of the agreement was China`s commitment to increase its imports of US goods and services. China agreed to increase its imports of US goods, including energy, agriculture, and manufactured goods. In return, the US agreed to lift certain tariffs on Chinese goods.
The trade agreement also addressed concerns around intellectual property theft and forced technology transfer. China agreed to create a more level playing field for foreign companies operating in China, and to protect the intellectual property of foreign companies operating in the country.
While the 2018 US-China trade agreement was seen as a positive development in the ongoing trade relationship between the two nations, it was only a temporary truce. In 2020, the trade war reignited with both nations imposing additional tariffs on each other`s goods.
Overall, the 2018 US-China trade agreement represented a significant step towards reducing tensions between the two nations and increasing economic cooperation. However, the ongoing trade war highlights the complex and often challenging nature of the US-China trade relationship. It is clear that further negotiations and agreements will need to be reached in order to create a more stable and mutually beneficial trade relationship between the two nations.