China and the United States have agreed on the text of a "phase 1" economic and trade agreement based on the principle of "equality and mutual respect."

Axar.az reports citing BI that as part of the interim deal, the Trump administration has dropped its plan to impose new tariffs on $160 billion of Chinese imports beginning Sunday.

The administration is also reducing its existing import taxes on about $112 billion in Chinese goods - including smartphones, computers and other consumer electronics - from 15% to 7.5%.

The United States has also agreed to modify its Section 301 tariff actions in "a significant way."

In return, China agreed to buy $32 billion in U.S. farm products over two years. Beijing has also committed to ending a practice of pressuring companies to hand over their technology as a condition of gaining access to the Chinese market.