ⓒYONHAP News

"This is a very important and remarkable occasion. Today we take a momentous step, one that has never been taken before with China... "

Washington and Beijing have agreed to a first phase compromise, initiating a ceasefire in their trade war.

U.S. President Donald Trump on Wednesday signed the "phase one" deal with Chinese Vice Premier Liu He at the White House, 18 months after the U.S. leader sparked a bitter dispute with harsh tariffs on Chinese imports.

"Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families. I want to thank President Xi, who is watching as we speak, and I'll be going over to China in the not too distant future to reciprocate. But I want to thank President Xi, a very, very good friend of mine."

Chinese Vice Premier Liu He read a message from Chinese President Xi Jinping, who stressed that the deal is good for both sides as well as for the global economy.

"China is prepared to work with the U.S. in that direction and I will stay in close touch with you personally. I believe that under our guidance, China-U.S. relations will deliver more results and bring greater benefits to our peoples in the year ahead."

While easing economic sanctions on China, the 86-page phase one deal requires China to purchase an additional 200 billion dollars’ worth of American products.

South Korea's KB Securities predicted that the deal would boost global economic growth by point-one percentage point. Economics Professor Yang Jun-sok at the Catholic University of Korea, however, says it might not be good news for the export-driven Korean economy.

"Such additional purchases will mean that China will buy less from other countries, including likely Korea. It also leaves a dangerous precedent since new trade agreements now may contain provisions that one country has to buy an amount from another country instead of letting the markets work. Further phases are also likely, on the net, to hurt Korea since they will likely vastly limit the role the government plays in supporting domestic industries in the region. However, there is some bright side, since Chinese firms may be slower to catch up to Korean firms."

Analysts said the U.S. and China could make substantial progress in a subsequent phase two deal before the U.S. presidential election in November.