China and the US says that they will halt imposing disciplinary import tariffs on each other, putting a possible trade war "on hold".
The deal came after talks in the US aimed at persuading China to buy $200bn (£148bn) of US goods and services and thereby, reducing the trade imbalance.
According to US Treasury Secretary Steven Mnuchin, no figures were released, but he said that the US would impose tariffs worth $150bn if China did not implement the agreement.
On the other hand, Chinese Vice-Premier Liu He described the deal as a "win-win choice".
He said that dialogue was the way to resolve such issues and "treat them calmly" in the future.
Prior to that, it has been a growing issue, the so-called "import tariff" between the US and China, but as of May 20, 2018 a sudden change of heart happened that will lead to better trades.
Before being elected, President Donald Trump had spoken of China "raping" the US, and promised to label it a currency manipulator on his first day in office.
This did not happen, but he ordered a review of the trade imbalance last August. It found a range of "unfair" practices in China, including restrictions on foreign ownership that pressured foreign companies into transferring technology, unfair terms on US companies, Chinese investments in US strategic industries and Chinese cyber-attacks.
Recalling what happened in March this year, President Trump announced plans to impose tariffs on Chinese imports - mainly affecting steel and aluminum.
In addition, Beijing threatened an equal retaliation, including tariffs on a number of US imports - among them aircraft, soybeans, cars, pork, wine, fruit and nuts.
Will it be over?
The two-day meeting ended in Washington DC on Friday with a framework agreement.
Mnuchin told Fox News on Sunday that China would buy more US goods "to substantially reduce the trade deficit".
Solid numbers had been agreed, he said, although he refused to unveil if this meant China was buying $200bn in return for the US threat to be lifted. US Commerce Secretary Wilbur Ross would travel to China soon, he said, to work on the details, which would involve industries - not just the two governments.
"We are putting the trade war on hold. Right now we have agreed to put the tariffs on hold while we try to execute the framework" of the agreement, Mnuchin said.
However, he gave some caution that failure to implement it would definitely result in the imposition of the threatened US tariffs.
China's side
According to Chinese vice-premier Liu, his visit to the US had been "positive, pragmatic, constructive and productive".
Describing a "healthy development of China-US economic and trade relations" which would result in enhanced co-operation in areas such as energy, agriculture products, healthcare, high-tech products and finance.
"Such co-operation is a win-win choice as it can promote the high-quality development of the Chinese economy, meet the people's needs, and contribute to the US effort to reduce its trade deficit," he added.
Mnuchin said the new framework agreement included structural changes to Chinese economy to enable fair competition for US companies, but this would take time, China's vice-premier said.
And, perhaps because of that, he said the two countries "should properly handle their differences through dialogue and treat them calmly in the future".
