The United States and China have agreed to the terms of “deal in principle” to de-escalate the 17-month negotiations.
“The written agreement is still being formulated, but they have reached an agreement in principle,” a source told New York Post.
Earlier Thursday, Dec. 12, President Trump tweeted about the ongoing negotiations with China, saying “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”
“We’re close to a deal,″ said Myron Brilliant, the U.S. Chamber of Commerce executive vice president and head of International Affairs , who has been briefed by both sides.
Brilliant said the administration has agreed to suspend Trump’s plans to impose tariffs on $160 billion in Chinese imports Sunday and to reduce existing tariffs, though it wasn’t clear by how much.
In return, Beijing would buy more U.S. farm products, increase Americans companies’ access to the Chinese market and tighten protection for intellectual property rights.
The deal awaits final approval from President Donald Trump.
The two sides are negotiating a “Phase 1” agreement as part of the effort to resolve their sprawling trade dispute.
The administration accuses Beijing of cheating in its drive to achieve global supremacy in such advanced technologies as driver-less cars and artificial intelligence. The administration alleges—and independent analysts generally agree—that China steals technology, forces foreign companies to hand over trade secrets, unfairly subsidizes its own firms, and throws up bureaucratic hurdles for foreign rivals.
Since July 2018, the Trump administration has imposed import taxes on $360 billion in Chinese products. Beijing has retaliated by taxing $120 billion in U.S. exports, including soybeans and other farm products that are vital to many of Trump’s supporters in rural America.
On Sunday, the United States is scheduled to start taxing another $160 billion in Chinese imports, a move that would extend the sanctions to just about everything China ships to the United States.
Includes reporting from the Associated Press