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The “phase one” U.S.-China deal that takes effect today could bring relative peace on the bilateral trade front this year as President Donald Trump runs for reelection. But while much of the attention will be on how close China comes to meeting a commitment to buy an additional $200 billion worth of goods over the next two years, the agreement also contains a number of deadlines for China, and to a lesser degree, the United States, to take regulatory actions to pave the way for increased trade.

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The US-China Phase 1 trade deal slapped huge commitments on China yet did not remove many imposed tariffs and will be challenging to implement amid a coronavirus outbreak, says Bert Hofman.

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Chinese President Xi Jinping (R) and US President Donald Trump attend their bilateral meeting on the sidelines of the G20 Summit at Osaka on June 29, 2019.

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Since the phase one trade deal between China and the United States was inked on 15 January, much of the commentary has focussed on the overly ambitious targets for Chinese purchases of US goods. Critics charge that the deal amounts to ‘managed trade’ or ‘central planning’ that substitutes government diktats for market forces.

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China on Thursday said it would halve additional tariffs levied against 1,717 U.S. goods last year, following the signing of a Phase 1 deal that defused a bruising trade war between the world’s two largest economies.

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China is preparing to halve the extra tariffs on U.S goods that went into effect last September, including on crude oil, soybeans, pork and beef.

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Ng quiet on U.S.-China trade deal, as fight for WTO reform continues

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China and the United States should enhance strategic coordination on their world views, and build a bilateral relationship based on coordination, cooperation and stability, Chinese Ambassador to the United States Cui Tiankai said here Saturday.

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The U.S. president emerges with the economy intact and his credibility enhanced.

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China has agreed to buy hundreds of billions of dollars worth of products from the United States as part of their "phase one" trade deal.

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