China, US reach deal on trade deficit; trade war averted

China and the United States issued a joint statement on Saturday on economic and trade consultations, vowing not to launch a trade war against each other.

The two countries agreed to take measures to reduce the US trade deficit in goods, with China significantly increasing purchases of US goods and services, which will help support growth and employment in the US, according to the statement.

“There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China,” the joint statement reads. “To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services. This will help support growth and employment in the United States.”

Under the guidance of Chinese President Xi Jinping and US President Donald Trump, a Chinese delegation led by Vice-Premier Liu He, a special envoy of President Xi, conducted “constructive consultations” with the US team, whose members include Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and US Trade Representative Robert Lighthizer, on Thursday and Friday, according to the statement.

Liu arrived in Washington on Tuesday afternoon for economic and trade consultations with the US side at the invitation of the US government.

The joint statement says that both sides agreed on meaningful increases in United States agriculture and energy exports, and the US will send a delegation to China to discuss specific issues.

The two sides discussed the expansion of trade for manufactured products and services and reached a consensus on creating favorable conditions for increasing trade in the above-mentioned areas.

The two nations attach great importance to the protection of intellectual property rights and agreed to ramp up cooperation thereof. China will advance relevant amendments to its laws and regulations, including the Patent Law, according to the joint statement.

This article provided by NewsEdge.