US-China deal: In phase-1, Beijing to buy products worth $200 bn over 2 yrs

China’s purchase of $200 billion worth of additional American products over a period of two years is part of the phase one trade deal with Beijing, the US has said, as the world's two top economic powers look forward to end their bitter two-year tariff war this week.

US President Donald Trump has announced last week that the US will sign the first phase of a pending trade deal with China “probably” on January 15. 

“We're signing, as you know, a very big deal among many other things with China...probably on January 15," Trump told reporters at a White House event. China’s commerce ministry on Thursday last confirmed that Vice Premier Liu will be in the US capital from Monday to Wednesday to sign the “Phase One” trade deal with the US.

The phase one deal signals a de-escalation in a trade war pitting the two most powerful economic giants against each other for nearly two years.

The phase one of the trade deal with China includes the country buying $200 billion worth of additional American products, US Treasury Secretary Steven Mnuchin said on Sunday. pti

In an interview to ABC News, he said, "It is USD 200 billion of additional products across the board over the next two years, and, specifically, in agriculture, USD 40 billion to USD 50 billion." "This is a big opportunity for our farmers. I think some people have questioned whether they can produce it. The president said they are going to go out and buy more land and produce plenty of agriculture (products)," he said in response to a question.

Describing it as a "historic transaction", Mnuchin said further talks would be held for the remaining phases.

"As we have said, there will be a phase two. But this is the first time we have had a comprehensive agreement with China on technology issues, agricultural issues, financial services, purchases, and has a real enforcement mechanism. So this is a big win for the president," he asserted.

Mnuchin said the first phase of the trade deal includes real enforcement provision. "If they don't comply with the agreement, the president retains the authority to put on tariffs, both existing tariffs and additional tariffs," he said.

The language of the trade deal, he said, will be released this week.