The “Phase One” deal signed by the U.S.
and China on January 15, 2020, calls a truce to the trade war
for now, halting the imposition of additional tariffs and promising
increased market access for U.S. products, services and industries.
Less clear is exactly how the deal will be enforced and whether it
can be sustained if one side believes the other is not abiding by
its commitments. Though there is hope supply chains between the two
countries can be restored, secular trends point to a technological
decoupling pulling the countries apart, due to underlying national
security concerns.
What the Deal Does
The 96-page Economic and Trade Agreement Between the United
States of America and the People’s Republic of China (the
“Agreement”) represents the culmination of sustained
effort by the Trump Administration to get China to change its trade
practices. Highlights include:
