The US and China sign a new trade agreement to avoid tariffs on technology

For two years the trade war between the United States and China has been happening, which is has led to a series of complications for exports This has severely affected several sectors, including the technology sector.

Besides that in this trade war not only they have been affected but also other countries and Not only that, we can also remember the Huawei case in which he was involved due to various movements made by the president of the United States. We can also remember RISC-V's decision to change its headquarters from USA to Switzerland due to trade fears.

But all of this seems to be over as last Wednesday a trade agreement was signed partial between the two superpowers in Washington.

This meeting It is a new stage in the commercial relationship between Washington and Beijing after two years of customs sanctions and retaliatory measures against the companies of the two nations.

Under the terms of the new agreement, Beijing will buy into American goods and services for the next two years, valued at $ 200 billion dollars.

The increase in purchases will be compared to 2017, before the start of the trade war. According to CNN Business, China imported more than $ 185 billion in US goods and services in total that year.

According to the same report, for two years, China's staggered purchases would lead to a sharp increase in US exports, overall. Total exports to China would rise to more than $ 260 billion in 2020 and to about $ 310 billion in 2021 if the deal continues.

"We believe that it is very difficult for China to import $ 200 billion in additional goods and services from the United States over the next two years without reducing imports from elsewhere," said analysts at UBS, a financial services company.

The agreement also provides for relaxing existing customs duties on various categories of imported products and avoid the imposition of new ones.

An agreement that benefits consumers

Under the deal, tariffs on goods worth roughly $ 120 billion will be halved from their current level of 15% to 7.5%. The list of items currently taxed at this 15% rate includes several technological products, such as televisions, headphones, monitors, among others.

It should be noted that consumer electronics, such as laptops and tablets, monitors and other peripherals, video game consoles and smartphones, would be subject to a new rate of 25% last December.

But these tariffs on technology have been avoided. At the time, the video game industry, among others, had asked management to exempt its products from the fees, arguing that the resulting price increases

"They would harm consumers, game developers Video, for retailers and console manufacturers, would jeopardize thousands of worthwhile and rewarding jobs in the United States and stifle innovation in our industry and beyond."

Although under the new agreement, there will be no new fees on technologies, Most of the previously imposed fees will remain in effect. This includes the additional 25% tariffs added in 2018 on imports of semiconductors, modems, and certain other technology components.

Beijing and Washington they have also taken into account, in a section of their new agreement, intellectual property and forced technology transfer.

In fact, China often requires foreign companies to that operate in the country carry out their activities through joint ventures. These companies in turn transfer sensitive internal technologies, trade secrets, mainly to local Chinese companies. US companies and other international companies accept such conditions to enter the lucrative Chinese market.

However With the new trade agreement, these practices will be severely restricted. The agreement specifies that any transfer or license conditions between US and Chinese companies

"It must be based on market conditions that are voluntary and reflect mutual agreement."

Neither party to the agreement, that is, the United States and China,

"Require or exert pressure, formally or informally, on the other party's people or companies to transfer technology to their people as a condition" to receive permission to operate in the other party's market, "the agreement says.

Ultimately it remains to be seen how the requirements of this new agreement will be implemented on both sides.

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  1.   qtrit said

    Fuck whore! .. Is it just me, or someone else sees Mr. Chino as WhiteRose from Mr. Robot!