China Commerce Ministry spokesperson Gao Feng anounced that both U.S. and Chinese government agreed to simultaneously cancel some existing tarriffs on each other's goods in phases worth $11 billion. Now that America agrees to lift existing tariffs in phases, part of their agreement is to remove the same amount of charges at the same time. 

In a report from CNBC, both countries were closer to the so called Phase One agreement following the negotiations of both countries for the past few weeks. Feng insisted that one important condition in the trade agreement is to remove the charges on goods at the same amount and at the same time. 

Washington and Beijing spoke on the progress since last week and the market participants expected the two giant countries to sign a deal within the month. Meanwhile, President Donald Trump and Chinese President Xi Jinping are supposed to meet in Chile for the Asia Pacific Leaders summit but it will be postponed on December due to the present rally in Chile. The summit could be a chance for the two leaders to sign an interim trade deal.

Since 2018, the two big countries have charged billions of dollars on each other's goods, while facing declining financial market, souring business, and consumer sentiments. However, economic analyst is skeptical in the recent trade deal. According to the economic analyst, both countries need a more comprehensive agreement before they can boost and sustain market sentiments. Moreover, the U.S. and China trade deal is a step for the two countries to sign in a long-term trade deal.

In addition, Feng told the Fox News  that prior to the phase-one trade deal agreement there were constructive talks between the U.S. and Chinese government. According to Feng, that in the past two weeks, the lead negotiators had serious and constructive discussions on the core concerns or issues and agreed to remove additional tariffs as progress is made on the agreements.  

Meanwhile, 15 percent cut in tariffs on $11 billion in Chinese imports was also discussed earlier this week. The talks also include the finishing touches on the phase one pact that include Chinese government purchasing American farm goods, rules to deter manipulation of currency and some provisions to protect intellectual property and the opening of Chinese industries in U.S. firms.

On the other hand, U.S. Commerce Secretary Wilbur Ross said that he is optimistic of the results of phase one and also looking forward that more issues will be addressed in the later rounds. Ross added that the Phase 1 is only the beginning of the future agreements between U.S. and China. 

The economist from ING Bank NV in Hongkong Iris Pang said that he is skeptical on how fast the progress will be and on how fast the roll back will be critical for a long lasting sentiment for both countries. Meanwhile, China's General Administration of Customs and Ministry of Agriculture is now studying to remove also the U.S. poultry imports.

Moreover, on Thursday, Chinese government sentenced three nationals for smuggling fentanyl to the U.S. at the maximum punishment. This is part of the agreements between Washington and Beijing because this is one of the highest-profile moves behind Trump's bone of contention. 

Read more: China says it has agreed with the US to cancel existing trade tariffs in phases  and China says US agrees to roll back existing tariffs in phases