The first phase of trade agreement between USA and China has been approved

The first phase of trade agreement between USA and China has been approved

Leaders of US and China have signed a first phase  of the fair trade agreement thus deescalating mutual trade war.

Prior to signing the agreement, the Trump administration removed China from the its black list of foreign currency manipulators - one of the issues that led to the trade war. Instead, China was moved into the monitoring list together with nine other countries including Germany, Italy, Japan, Korea, and Switzerland.
The agreement contains important provisions which give American companies special status and substantial protection in their activities in China. Particularly, American organizations will be authorized to manage investment funds, provide insurance services and clearing payments in China.

In the field of intellectual property protection, a provision has been introduced on shifting burden of proof onto the defendant upon introduction of initial evidence of violation (including circumstantial evidence), as well as other measures regarding temporary injunctions, facilitating presentation of evidence from abroad and eliminating the requirement of significant damage to the IP owner as a precondition for certain actions against the violator.

In the regulatory sphere, a ban has been established for the Chinese authorities to require the provision of information in excess of what is necessary as part of licensing or conducting investigations, as well as involving potentially biased external experts in such activities.
It was also established that if the term for approval of a patent application exceeds 4 years, the validity of the patent is extended accordingly. Additional obligations are established in order to combat the unfair registration of trademarks (for example, to block a competitor or force a buyout of a trademark at an inflated price).

The most important provisions are those that prohibit setting conditions for granting of permission to operate on the Chinese market to American organizations, upon transfer of their technology to local organizations, or incorporation of local technology into their products. All technology transfer mechanisms can only be on voluntary base and at the market terms. The ban applies to direct and indirect requirements, as well as informal restrictions.

The American organizations has been also granted right to be represented by lawyers and the right of access to evidence against them, in all administrative proceedings. In addition, American organizations got the right to receive information about the nature of the proceedings, the procedure and evidence applicable to the process, which is not usually applicable during the proceedings in China.

In the field of agriculture and the food industry, it has been determined that for some types of products it is sufficient to comply with American standards and certification for marketing in the Chinese market.

To this should be added detailed mutual complaints mechanism, with a number of decision-making levels and precise deadlines for responding.

In return, as part of the first phase of the agreement, the United States agreed to lower recently imposed tariffs for Chinese goods and suspend levying of new tariffs. In exchange, Beijing pledged to purchase USA goods, including agricultural products, refrain from competitive devalvation and introduce transparency and accountability in the yuan rate, said US Treasury Secretary Steve Mnuchin.

The relief will only apply to some of the Chinese goods subject to US restrictions.
For example, the 15 percent tariff introduced by the US government last September for Chinese goods worth $ 120 billion, will be reduced to 7.5%, while the 25 percent tariff for Chinese goods worth $ 250 billion will remain unchanged. The US President said that the recently imposed American tariffs on Chinese goods will be completely cancelled after both countries approve the 2nd phase of the trade agreement.

签署美中第一阶段贸易协议前,特朗普政府正取消将中国列为货币操纵国

美国财政部长史蒂芬·姆努钦(Steven Mnuchin)表示,由于特朗普总统将在白宫与中国签署的第一阶段贸易协议中的承诺,美国政府已取消将中国认定为货币操纵国。在将中国从货币黑名单中删除的同时,美国财政部还将中国列入需要观察名单的十国之一,这将意味着将密切监视其货币操作。除中国外,该名单上还包括德国、意大利、日本、韩国和越南。

姆努钦在这份货币报告随附的一份声明中说:“中国作出了可执行的承诺,避免采取竞争性货币贬值,同时提高透明度和问责制。”

特朗普计划于本一月十五日签署美中第一阶段贸易协议,政府官员表示,之后该协议的内容将予以公布。

双方皆宣布达成“第一阶段”协议,美方降低对中国商品的部分关税,以换取中方增购美国农产品等商品。

在协议中,美国维持此前承诺,取消12月15日对剩余1600亿美元商品加征关税,同时对9月已加征的商品(约1200亿美元)关税税率从15%降至7.5%,但继续保留对2500亿美元商品加征25%的关税。特朗普表示,保留部分关税利于第二阶段谈判。

https://ustr.gov/sites/default/files/files/agreements/phase%20one%20agreement/Economic_And_Trade_Agreement_Between_The_United_States_And_China_Text.pdf

http://www.gov.cn/guowuyuan/2020-01/16/5469650/files/0637e57d99ea4f968454206af8782dd7.pdf