After weeks of uncertainty, the United States and China formalized a new economic and trade agreement aimed at dealing with years of problems and establishing a more clear guidance on trade.
The agreement emphasizes the critical importance of economic relations between the two largest economies in the world. Both countries have explicitly acknowledged that expanded trade, adhering to the norms of the international market, and market results serve their mutual interests and create a broader international cooperation in loads and logistics sectors.
The reambul to the agreement specifically acknowledges the benefits of contributing to “harmonious development and expansion of world trade” while dealing with existing trading and investment problems identified by both parties.
A significant part of the agreement focuses on the protection of intellectual property, signaling a significant shift in China’s approach to this issue. China acknowledged its constant transformation, “from the primary consumer of intellectual property to a major intellectual property producer,” and expressed the conviction that the increased implementation of intellectual property is aligned with its goals for building an innovative economy and promoting high quality economic growth.
According to Article 1.1, both countries formally confirmed their commitment to the intellectual property provisions, as stated during the agreement, while Article 1.2 finds that both parties “guarantee fair, adequate and effective protection and implementation of intellectual property”.
The agreement includes a 90 -day break for most tariffs existing in the second April to allow “additional negotiations” over the next three months. Both the US and China will return reciprocal tariffs, with US tariffs for China located about 30 percent and duties of goods in the United States about 10 percent. These lower percentages will come into force on May 14.
The agreement sets a particular focus on the protection of the trade secret, which the United States emphasized as a priority. China positions the protection of commercial secret as a “essential element in optimizing the business environment”, with the two countries engaging in effective protection of trade secrets and confidential business information.