The US President, Mr. Donald Trump, has said he is considering signing the first phase of the long-awaited trade deal with China in Iowa. Mr. Trump and the Chinese President, Mr. Xi Jinping, were expected to ink the agreement at the Asia Pacific Economic Cooperation (APEC) summit in Santiago, Chile in mid-November, but host Chile announced on Wednesday that it was cancelling the event due to mass demonstrations.
'We’re moving along the deal with China. China wants to make the deal very much and we have a good relationship and we’ll see what happens. I don’t like to talk about deals until they happen, but we’re making a lot of progress,' Mr. Trump told reporters.
According to Mr. Kudlow, a spokesman, negotiations on agriculture chapter is about closed now. This will not only increase Chinese purchases of US farm products from 40 to 50 billion dollars, but also open up the Chinese agricultural markets, the lowering of regulations and standards and non-tariff barriers. Farmers have been hit hard by the trade war. Mr. Trump has been trying to assure them that they will come out ahead in the end.
'The financial services chapters virtually done. It’s going to give 100 per cent ownership to American companies in China, securities firms, insurance, investment, and so forth,' he said. 'The currency chapter is virtually done for stability rather than any manipulation. Excellent progress on the intellectual theft problem, the intellectual property theft problem, so-called IP chapter. It’s not completed, but very good progress on that,' he said.
According to Mr. Kudlow, the issues related to tech transfer have made some progress but would probably be taken up in phase two. 'The deal is not completed, but we’ve made enormous progress. We are beyond where we were last spring. So I’m going to play that from the optimistic side,' he said, adding that Mr. Trump is looking at signing the deal with Mr. Xi and they are now looking for a venue.
When Mr. Trump launched a trade war, the US and China have slapped tariffs on 360 billion dollars in a two-way trade since last year.