The Glossary
Phase One Agreement
The January 2020 deal: Chinese purchase commitments in exchange for partial tariff relief.
Definition
Signed January 15, 2020, the Economic and Trade Agreement committed China to purchase at least $200 billion more in U.S. goods and services over 2020-2021 than in 2017, across manufactures, agriculture and energy. In exchange, the U.S. cancelled List 4B and halved List 4A to 7.5%, leaving roughly two-thirds of the 2018-19 tariffs in place pending a "Phase Two" that never came. The pandemic and demand collapse meant China ultimately bought roughly 58% of the committed total (per widely cited PIIE tracking), and the purchase structure expired by end-2021.
Why it matters
Phase One is the template for every "purchases-for-pause" bargain since — including Busan's soybean clause — and the reference point for skeptics of managed-trade commitments.