MNI POLICY: China Says Details of Phase-1 Deal Need More Work

     BEIJING (MNI) - China said on Friday it has reached a preliminary agreement

with the U.S. on the clauses of a "phase-one" deal to ease the 22-month trade

war between the two countries, but declined to confirm details given by the U.S.

on both the tariff reduction and its committed purchases of agricultural

products.

     Here are the major points from a late-night press briefing given by Vice

Minister of Commerce Wang Shouwen and four other vice ministers:

     - The U.S. is committed to phasing out extra tariffs on Chinese products in

stages and it will also increase the exemptions on Chinese products from the

extra tariffs. 

     - While China has agreed to "drastically" increase imports of U.S. energy,

medical and agricultural products, especially soybeans, pork and poultry meat,

the details of the agreement are still being worked on, said Ning Jizhe, Vice

Chairman of the National Development and Reform Commission.

     - China will strictly observe import quotas on wheat, corn, rice agreed

under WTO and in accordance with market needs, said Vice Minister of Agriculture

Han Jun. The U.S. also agreed to allow Chinese exports of poultry products, pear

and other products, Han said. 

     - The details on signing of the agreement are yet to be worked on as the

two sides work on the translation etc. of the agreement.

     - China will consider refraining from adding further tariffs on Dec 15. 

     - Phase-two discussions will be pending on the proper implementation of the

phase-one deal. No timeline nor details on the extent of the tariffs to be

lowered provided. 

     - The agreement includes nine chapters with issues about intellectual

property, technology transfer, food and agricultural products, financial

services, foreign exchange rates and transparency, trade expansion, bilateral

assessments and dispute settlement.

     - For the next step, both parties will complete the necessary procedures

such as legal review and translation proofreading as soon as possible, and

negotiate the specific arrangements for the formal signing of the agreement.

     - This agreement is generally in line with China's general direction of

deepening reform and opening up, and its inherent needs to promote high-quality

economic development.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com

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