China`s state-running Xinhua news agency said Tuesday morning in Beijing that the two sides had a „constructive dialogue“ and agreed to „create the conditions and atmosphere to continue the implementation of the trade agreement.“ Top U.S. and Chinese trade negotiators have confirmed progress in implementing their trade sub-agreement, which came into effect in February and pledged to ensure its „success,“ the U.S. Trade Representative`s office said Monday. In telephone conversations, the two sides discussed „the steps China has taken to make structural changes“ that the agreement called for, such as intellectual property protection and forced technology transfer, Lighthizer`s office said. But he said his feelings about the deal changed when the U.S. economy was devastated by the new coronavirus first discovered in China late last year, jeopardizing his re-election chances in November. Today, the world`s two most powerful economies have begun to re-establish a positive and mutually beneficial trading relationship. The agreement requires discussions every six months on the development of the agreement. The United States and China are reported to have scheduled a video conference on August 15, but U.S.
President Donald Trump said last week that he had postponed it. The economic and trade agreement of the first phase addresses certain of China`s actions, policies and practices identified in the Section 301 study on technology transfer, intellectual property and innovation. The agreement begins to rebalance our trade relations and achieves sound and fully applicable commitments to solve structural problems. The phone call was the first exchange in three and a half months between senior officials from both countries. The Phase 1 Economic and Trade Agreement contains a chapter on intellectual property that strengthens the protection and application of intellectual property in China. Trump first welcomed the first-phase agreement, which brought a ceasefire into the bloody trade war between the world`s two largest economies. The agreement prohibits coercion or pressure on foreign companies to transfer their technology as a precondition for market access, authorisation or benefits. The agreement also requires that any transfer or license of technology be based on voluntary market conditions and reflect mutual consent. According to a statement from his office, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin participated in a „regular phone call“ with Chinese Vice Premier Liu He in the evening and both sides saw „progress“ in the trade agreement.