US and China reach phase one trade deal: source

A deal is done, with some fine-tuning on the details underway

The chances of a U.S.-Chinese trade truce rose Friday, though Beijing has yet to confirm things.

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“Negotiations must be based on the principles of equality and mutual respect,” said a foreign ministry spokeswoman, Hua Chunying, repeating Beijing’s long-held position. “The deal must be mutually beneficial, a win-win.”

The United States and China have completed phase one of a trade deal, a source confirms to FOX Business. Details of the deal are still being fine-tuned but the December 15 tariffs will not happen, FOX Business has confirmed along with other key points.

US-China Phase 1 Deal - What We Know

  • The Chinese agree to buy $50B in agriculture, but will not write that amount down on paper. It’s a verbal agreement on the number of purchases
  • On paper, it includes a section on stronger intellectual protections 
  • Includes language around an end to currency manipulation by the Chinese 
  • Phase 2 negotiations will happen after the 2020 elections

President Trump is expected to announce more details on Friday and as of now, a signing ceremony is not happening with President Xi.

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Trump has stated he wanted to have the signing in Iowa as a boost to the farming community.

Reports that a deal was ‘imminent’ surfaced during the final hour of trading, giving the S&P 500 and Nasdaq a lift to all-time closing highs, while the Dow Jones Industrial Average was just shy.

TickerSecurityLastChangeChange %
SP500S&P 5003298.46+51.87+1.60%
I:COMPNASDAQ COMPOSITE INDEX10913.561787+241.30+2.26%
I:DJIDOW JONES AVERAGES27173.96+358.52+1.34%

Earlier on Thursday President Trump hinted, in a tweet, that the two nations were "Getting VERY close to a BIG DEAL with China..."

FOX Business' Edward Lawrence and Hillary Vaughn contributed to this report. 

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