US-China trade deal: Biggest winners & losers in phase 1
The US and China trade deal comes after months of negotiations between the two sides. Interestingly, Mexico, Taiwan and Vietnam have also emerged victorious. A look at the winners & losers of the phase 1 deal.
Chinese president Xi Jinping
It's also a win-win situation for Trump's Chinese counterpart Xi Jinping. This as the US agreed to terms offered by China while Chinese tariffs on US farm products remain intact.
China agreed to buy $200 billion more in US goods over two years than it did in 2017 before the trade war erupted, according to the agreement signed Wednesday.
That includes an additional $32 billion in American farm products and seafood, nearly $78 billion in manufactured goods like aircraft, machinery and steel, and $52 billion in energy products.
Mexico, Taiwan and Vietnam
Apart from US and China, Mexico, Taiwan and Vietnam have also emerged victorious. They witnessed an increase in investment from the US during the trade war. Their agreements with Washington will remain at place even after the deal's signing.
The deal calls for punishment on the robbery of prized formulas and for China to officially boycott digital burglary, the unapproved divulgence of trade secrets and the utilization of taken competitive innovations.
It additionally requires the formation of a system for settling disagreements about medication licenses.
US Companies & consumers lose
According to the pact, China won't remove tariffs on US imports and the US won't lift higher duties on Chinese goods.
Chinese goods to remain expensive.
US companies have a lot to lose as China has refused to remove tariffs on American imports.
As for the consumers, goods are not going to get cheaper as the US has declined to lift higher duties on imports.
China won't lift tariffs on agricultural imports. Americans farmers will also continue to suffer under high Chinese tariffs.
The deal incorporates $32 billion in American ranch items and fish, nearly $78 billion in made merchandise like aeroplane, hardware and steel and $52 billion in vitality products.
"They're fundamentally saying Chinese customers and the Chinese economy needs these American items thus the arrangement will classify that," top White House monetary assistant Larry Kudlow told a US news channel.
With respect to whether US homesteads could take care of such goliath orders, Kudlow included that while American creation isn't boundless "we have a lot of ability to open the throttle."