Tech, Telecom Worries Persist Even With Some Tariffs Averted

three tranches worth $250 billion. There's anxiety a comprehensive Phase Two trade agreement may be months away. "We will begin negotiations on the Phase Two Deal immediately, rather than waiting until after the 2020 Election," tweeted President Donald Trump. "This is an amazing deal for all." Phase One is “an historic and enforceable agreement” that “requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer,” among others, said the Office of the U.S. Trade Representative. Formal “signing” of Phase One awaits “legal review, translations, authentication and other necessary procedures,” Vice Commerce Minister Wang Shouwen told a Beijing news conference Friday. The U.S. and China held in-depth discussions on boosting IP safeguards, said ministry officials. Phase One addresses the protection of trade secrets and combating pirated and counterfeit goods over e-commerce platforms, they said. It also features measures for enhancing IP enforcement, they said. It's “welcome news,” said CTA CEO Gary Shapiro. It addresses “critical tech priorities,” such as IP protections and forced technology transfer, he said. Postponing the List 4B tariffs on smartphones, laptops and tablets “may temporarily protect American consumers from price increases,” he said. The Information Technology Industry Council is “pleased” Phase One “begins to roll back harmful tariffs, increases IP and tech transfer protections for American companies, further opens China’s financial market, and stabilizes this critical trade relationship,” said CEO Jason Oxman. “We encourage both countries to use this positive momentum to finalize a broader agreement.” It's "needed relief for the semiconductor industry by reducing uncertainty, easing some harmful tariffs, and not adding more,” said Semiconductor Industry Association CEO John Neuffer. “We urge both sides to avoid further escalations that could undo this progress.” The U.S. and China should use Phase One as “a springboard to a more comprehensive deal that more effectively protects intellectual property,” he said. The Telecommunications Industry Association thinks Phase One is “a first step toward addressing systematic issues,” said CEO David Stehlin. "TIA hopes that faithful implementation of this Phase One agreement will build trust and encourage China to address the unfair trading practices that limit market access for global technology firms operating in China.”