The US and China have agreed to the first phase of the historic Trade Deal. This is big news for the world economy. After almost 1.5 years of trade war, both countries have made a historic first phase trade deal, easing the trend on Friday. US President Donald Trump gave this information through a series of tweets on Friday. In addition, China's Deputy Commerce Minister Wang Shouwen also confirmed that both sides have agreed to reach an important point of business negotiations for the first phase of the deal.

We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder....

— Donald J. Trump (@realDonaldTrump) December 13, 2019

As part of the first phase of negotiations, China has agreed to change its economic and business system on issues such as Intellectual Property, technology transfer, agriculture, financial services and currency and foreign exchange. China has also agreed that it will increase the purchase of goods and services from the US in the coming years. The trade deficit between China and the US has been the most important aspect of this trade war. Most importantly, the two countries have agreed to put in place an extremely strong dispute settlement mechanism, through which disputes will be settled as quickly and effectively as possible.

The US has also agreed to a major change in its business laws as both countries reached a trade agreement. In his tweet, Trump said, "We have agreed to the first phase of the huge deal. China has agreed to a structural change in its laws for large-scale purchases from the US in agricultural products, energy, manufactured goods and many other areas.

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