In a move that would provide momentary relief to global businesses from the ongoing economic conflict between the United States and China, both countries signed a trade deal on Wednesday.

The deal was signed at a ceremony in the White House.

US President Donald Trump signed the "first phase" of the trade deal with China's Vice Premier Liu He. Liu He led Beijing's negotiations with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

The unprecedented move will open up American markets for Chinese goods and vice-versa after a long time.

"Today, we take a momentous step, one that's never taken before with China," that will ensure "fair and reciprocal trade," Trump said at the ceremony.

Trump also thanked Chinese President Xi Jinping at the ceremony, saying that he will visit China in "the not-too-distant future."

However, Trump says that tariffs on imported goods worth hundreds of billions of dollars remain in place, adding that its removal will be based on the "phase two" negotiations. Trump cautioned that most difficult issues remain to be dealt with during the "phase two" negotiations.

As part of the deal, Beijing agreed to import an additional US $200 billion in US products over two years including an added US $32 billion in agricultural goods.

This is essentially beneficial to the American farmers who have have been affected by the tariff wars.

The deal also comprises of protections for intellectual property and addresses financial services and foreign exchange. The key provisions in the deal are ending forced technology transfer, removing barriers to American financial services, ending currency manipulation among other things.

The entire fiasco started in 2018 when Donald Trump imposed trade barriers on China in order to reduce the US trade deficit by forcing Beijing to change its "unfair trade practices."

Trump claimed that the move was taken to promote domestic manufacturing.

The aforementioned event sparked several rounds of tariff and counter-tariffs between the two economic superpowers.