Trade war

China halves tariffs on more than 1,700 US goods

Containers are seen stacked at a port in Qingdao in China's eastern Shandong province.
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China plans to halve tariffs on 1,717 goods it imports from the US as the country faces the fresh challenge of the coronavirus.

The two countries have been stuck in a long-running trade war with both imposing tariffs on imported products.

A partial resolution was agreed last month with China promising to boost imported US goods by $200bn.

Chinese officials said tariffs on some goods will be cut from to 5% from 10%, and from 5% to 2.5% on 14 February.

This latest announcement to reduce tariffs is China's first response to the "phase one" agreement.

Asian shares head higher as China cuts US tariffs

President Donald Trump and Vice Premier Liu He sign the Phase One Trade Deal in January 2020.
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Stock markets is Asia made gains after China said it would cut in tariffs on more than 1,700 imported goods from the United States, following last month's signing of a Phase 1 trade deal that brought a truce to the bruising trade war.

Japan's benchmark Nikkei 225 was up 2.9%, the Hang Seng in Hong Kong rose by 2.7%, and China's Shanghai Composite gained 1.3%.

Asian stocks shrug off US-China trade deal

Man in front of Asian stock market board.
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Asian stocks are relatively flat today even after the signing of the "phase 1" US-China trade deal helped push Wall Street to fresh record highs.

Japan's Nikkei 225 closed 0.15% higher, the Hang Seng in Hong Kong edged up by 0.05%, and China's Shanghai Composite was 0.44% lower.

US-China trade deal just the start

BBC Radio 4

Donald Trump and Xi Jinping
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There was much fanfare over the signing of the US-China trade deal last night.

But for economist Rebecca Harding, it is "more noticeable for what it excludes than includes - the big things the US was concerned about: particularly cyber-theft and the big state subsidies for industries".

These may come up in phase two of the trade talks, but the chief executive of Coriolis Technologies told Today there is no date when these might start. There is, then, a long way to go, she said.

Five things that aren't in the US-China deal... and why

US President Donald Trump shakes hands with Chinese Vice Premier Liu He, before signing the phase 1 of a trade deal.
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After almost two years of hostilities, the US and China have finally signed a "phase one" deal.

But it only covers the easier aspects of their difficult relationship, and only removes some of the tariffs.

The biggest hurdles are still to come, and could stand in the way of a second, possibly final, agreement.

Here's what you need to know about what didn't make it into the deal.