Photo Credit: Industry Week

Beijing Overlooks Hong Kong Act, Reached Consensus On ‘Phase One’ Of Trade Deal With US

Contrary to widespread speculation, China have overlooked the Hong Kong Act signed by the US and have reportedly reached a consensus on the ‘Phase One’ of the trade deal with the US. This means that the US would postpone tariffs on Chinese imports of 160 billion USD worth of goods into US which was supposed to be effective from Sunday i.e. 15th December.

According to Politico, it is reported that China had offered to buy 200 billion USD worth of US goods and services within two years as a part of the agreement. In return, it is said that US has called off the trade tariff supposed to be imposed latest by December 15 as well as reduce existing tariffs on 250 billion USD worth of Chinese imports.While the US have tariffs on 375 billion USD of Chinese goods; China is reported to have duties on US products worth 110 billion USD.

It was widely watched as on how the US-China trade deal will shape in, considering Beijing’s warning of non interference into Hong Kong affairs. After the signing of the Hong Kong Act into law by US President Donald J. Trump, there was speculation on how Beijing would respond as well as on which direction US-China trade deal would take place.

As Beijing negotiators reached a consensus on the trade deal post Hong Kong Act but prior to the deadline of December 15, it is said that Beijing have overlooked the passing of Hong Kong Act by President Donald J. Trump.

After the Hong Kong protesters’ call for democracy and the thumping victory of the pro-democracy camp in Hong Kong, US President Donald J. Trump had signed the Hong Kong Human Rights and Democracy Act into law. President Trump had said while signing the said act that he hopes that the Hong Kong Act would not hinder the ongoing trade talks with Beijing.