Beijing: China and the US have agreed on the text of a phase one economic and trade agreement based on the principle of equality and mutual respect, official Chinese media reported on Friday.

China and the US have been locked in a longstanding trade war that has threatened to roil the global economy. The US has imposed tariffs on $250 billion of Chinese goods, having accused the country of unfair trade practices. Beijing hit back with duties on $110 billion of US goods, blaming the US for starting "the largest trade war in economic history". The IMF has warned that a full-blown trade war would weaken the global economy.