The signing of the agreement boosted, the Dow Jones Index and the Standard Purcell Index hit a new high on Wednesday, up 0.31%and 0.19%, respectively.(Reuters)

(Washington Composite Electric) China and the United States announced the first phase of trade agreement texts. Analysis believes that although the United States has always emphasized that the execution mechanism ensures that the Chinese side performs the agreement, the only solution to the exit agreement once the two parties have appeared in the agreement.Essence

Based on this 86 -page agreement, one of the chapters clarify the execution mechanism of the agreement.China and the United States will establish a trade framework group, led by US trade representative Leitzizer and deputy prime ministers designated by China to conduct regular negotiations, supervise the implementation of the supervision agreement, and resolve disputes related to the agreement.

Leitchizer insisted that the United States must have a strong execution mechanism that allows China to fulfill the agreement to protect the intellectual property rights of the United States and stop the forced U.S. technology transfer to Chinese enterprises, and increase the purchase of about US $ 200 billion in the next two years (US goods and services of 270 billion yuan).

It is generally believed that the so -called powerful execution mechanism in the United States is nothing more than the Trump administration's consistent practice MDash; MDash; if it violates the agreement, it will impose tariffs at the loss ratio.

However, according to the text of the first stage of the Sino -US trade agreement, if the party accused of illegal party does not agree with the result of tariffs, the only thing that can do is tore the agreement.The agreement did not clarify the terms of mediation, seeking appeal, or implementing retaliatory tariffs.The agreement only mentioned that if the party accused of violating the rules believes that the other party is a malicious action, the solution is to notify the other party to withdraw from the agreement in writing.

A government officials in the United States say that the agreement does not define any malicious and goodwill, and the authorities will take corresponding actions according to the actual situation and the impact on the economy.

The United States also emphasized that it has set up procedures to solve the dispute, that is, China and the United States will set up an office that is responsible for evaluating and resolving disputes alone. Any party will appeal, and the two parties will conduct a series of negotiations in about 90 days; if the dispute cannot be within the time limit period, the dispute cannot be within the time limit.Solution, the appeal party can take punishment measures including tariffs, and the other party has the right to withdraw from the agreement.

However, Gan Side, the director of China Business and Political Economic Research, the International Strategic Research Center of the United States, believes that the execution mechanism of the first phase of the agreement is too simple.Basically, it is zero or one, open or off.One party may destroy the entire agreement due to the dispute.

Shi Kendao, a Chinese expert at the American Institute of Enterprise Research, said that it was ultimately President Trump's decision whether the question was large enough to levy taxes.If (China) they purchase, (Trump) may be very happy.

Leitchizer also admits that the dispute solutions in the agreement do not know whether it is feasible, but it is believed that if China is willing, the agreement can be effectively implemented.

Six major points of the agreement

The first -stage trade agreement signed by China and the United States covers intellectual property rights, technical transfer, financial services, purchasing American goods, and execution mechanisms.The following is the six major points of the agreement content:

● China promises to expand the purchase of American goods and services

China promises to purchase goods and services from the United States in the next two years, which will be more than US $ 200 billion (about S $ 270 billion) before the start of the trade war.Among them, $ 32 billion is agricultural products and seafood, with about 78 billion US dollars as manufacturing products, such as aircraft, machinery and steel, and $ 52 billion in energy products.

The agreement also includes the elimination of the trade regulatory barriers to imported the United States' baby formula milk powder, beef, pork, seafood, and agricultural biotechnology products.

● Intellectual property

The agreement requires punishment for invasion or theft of commercial secrets, and to explicitly ban the theft of cyber theft, unauthorized disclosure of trade secrets, and trade secrets obtained by stealing.The agreement also requires the creation mechanism to solve the dispute between drug patents. At the same time, there are clauses to avoid counterfeit products such as counterfeit drugs and online piracy to protect patents with related products.

● Compulsory technology transfer

U.S. officials and corporate people have always complained that China has transferred with technological transfer as a condition for American companies to develop business in China.According to the agreement, both China and the United States will no longer force each other to transfer with technical transfer in exchange for opportunities for commercial acquisitions, joint ventures, or other investment transactions.

● Financial Services

China will make it easier for Bank of America to underwhn the debt of Chinese companies and reduce the barriers to the Bank of America entering the specific investment service market.China also agrees to allow US electronic payment services, such as credit card companies, etc. to apply for entering the Chinese market.By April 2020, China will allow wholly US companies to enter the Chinese insurance industry, mainly providing life, pension and medical insurance services.

● exchange rate

China and the United States have promised to abide by the principles of international currency funds and avoid manipulating exchange rates.The two parties also promised to cooperate to achieve the market decision to determine the exchange rate, avoiding the depreciation of the country's currency for the purpose of competition.

● Execution mechanism

If one of China and the United States believes that the other party violates the agreement, it can complain to the bilateral evaluation and resolution of the dispute office established by both parties.If the dispute cannot be resolved, it can gradually appeal to higher -level units.If it is not resolved, the complaint can stop some terms of the performance of the agreement, and if the party who is complained believes that the other party is malicious, they will have the right to withdraw from the agreement.