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The long-standing trade war between the United States and China seems to be coming to an end. Following a round of talks held in Washington on October 11, the two trade warriors arrived on various agreements. An important foundation, which would address each other trade concerns was established through a partial trade deal. This was according to Chinese Vice Premier and top trade negotiator Liu.

Improved relations between the two would benefit the whole world

For a very long time, the U.S. and China had been making demands on each other on how to do business. They both rule huge economies, but none was willing to bow down. The escalation of the conflict-affected hundreds of thousands of citizens in each country.

However, the two have agreed to meet halfway. They will exercise mutual respect and equality for the sake of accomplishing common goals. According to Liu, “The two sides have made substantial progress in many fields, laying an important foundation for the signing of a phased agreement.”

It will take up to five weeks to draw up the agreement

The trade war had resulted in tit-for-tat tariffs, which were imposed by each of the two on each other.  Nonetheless, the tentative deal, if completely sealed, would eliminate some of the harm the tariffs caused. It would also help in reviving Singapore’s economy, which has also suffered greatly as a result of the between the two giant economies.

Meanwhile, according to Trump, it would take up to five weeks to draw up the first part of the agreement. And as soon as it was signed, they would pick up on the second phase. The first phase would address elements such as the expansion of China’s financial services market. The second phase would address issues related to technology transfers.

However, a few things remain unclear, including the enforcement mechanism. But even then, there is a lot of optimism that the two are willing to rebuild trust in each other. It is worth noting that China’s middle class is becoming a pillar of economic growth locally and globally.