Trump trade war

China touts "phase one" trade deal as next step in its own development

Photograph of Chinese President Xi Jinping meeting with U.S. President Donald Trump in Osaka, Japan, on June 29, 2019
President Trump meets with Chinese President Xi Jinping in Osaka, Japan, June 29, 2019. Photo: Xinhua/Ju Peng via Getty Images

President Trump says the initial trade agreement between the U.S. and China is "righting the wrongs of the past," referring to what he views as China's exploitative economic and trade policies. But Beijing is sidestepping that narrative.

The big picture: Domestically, China is presenting the "phase one" deal not as concessions made to a superior foe, but as the logical next phase of its own economic development.

U.S. and China sign "phase one" trade agreement

Chinese Vice Premier Liu He and President Trump at the signing ceremony. Photo: Saul Loeb/AFP via Getty Images

President Trump and Chinese Vice Premier Liu He signed Wednesday the "phase one" trade deal between the U.S. and China.

The big picture: The 18-month trade war between the two countries has largely lacked significant breakthroughs, causing major market uncertainty and hammering the U.S. manufacturing industry. This reprieve — which will take effect in 30 days — could help that sector to rebound this year.