DONALD TRUMP REACHES AGREEMENT WITH CHINA ON A 'PHASE ONE' TRADE DEAL. CHINA PLACES BIGGEST AGRICULTURAL PRODUCTS ORDER IN HISTROY FROM US FARMERS.

US President, Donald Trump has reached an agreement with China on what he is calling a 'phase one' trade deal which is expected to favor US farmers like never before in history.

Announcing the agreement in a 12th October tweet, he said "The deal I just made with China is, by far, the greatest and biggest deal ever made for our Great Patriot Farmers in the history of our Country. In fact, there is a question as to whether or not this much product can be produced? Our farmers will figure it out. Thank you China!"

Recall that for many months now, the US and China have been on a trade war while negotiators from both countries were working on this trade deal.

The deal when signed will also cover the purchase of up to $20 billion of Boeing planes by China, financial services, and some technology sharing.

In a follow-up tweet on the 13th of October, Trump further said, "My deal with China is that they will IMMEDIATELY start buying very large quantities of our Agricultural Product, not wait until the deal is signed over the next 3 or 4 weeks. THEY HAVE ALREADY STARTED! Likewise financial services and other deal aspects, start preparing. I agreed not to increase Tariffs from 25% to 30% on October 15th. They will remain at 25%. The relationship with China is very good. We will finish out the large Phase One part of the deal, then head directly into Phase Two. The Phase One Deal can be finalized & signed soon!"


Mr. Trump also announced and gave details about the agreement during a press conference in the Oval office which had the Chinese Vice Premiere, other Chinese negotiators, as well as select members of Trump's cabinet who were part of the negotiating team on behalf of the US in attendance.

The main contents of the deal are as folllows:
1.   A deal on intellectual property. This will include technology transfers. Mr Trump says some of this will be captured in this phase one agreement while the others will be a part of the phase two agreement which will come much later.

2.   A deal on financial services. This includes more transparency in China's currency and foreign exchange markets, and opening up the Chinese market to US financial services firms for business.

3.   A deal on the purchase of $40 - $50 billion worth of agricultural products. This represents upto 250% increase in US agricultural product order from China at any other time in history. Prior to this agreement, China has purchased a maximum of only about $8 billion worth of agricultural products from the US.

4.   A deal on agricultural structural issues including biotechnology and SPS (Sanitary Phytosanitary) issues which will now make it easier for American farmers to ship products to China.

Trump reiterated respect for President Xi of China, and hinted that the deal would be signed during a planned summit between both leaders which is likely to hold within the next 3 to 4 weeks.

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