The 86-page agreement includes a pledge that Beijing will make at least $32.9 billion in additional agricultural purchases over the next two years, though the Trump administration says China will attempt to buy more.
"Today we take a momentous step, one that has never been taken before with China toward a future of fair and reciprocal trade with China", Mr Trump said as he signed the deal.
Trump signed the deal with China's Vice Premier Liu He, who has led Beijing's negotiations with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
While the agreement leaves many economic disputes between the two countries unresolved, Lovely said the 18-month trade war has allowed both sides to send a message.
The world's two dominant economic powers, the United States and China, are poised to sign a trade truce on Wednesday, letting businesses around the globe breathe a sigh of relief.
"We've already begun discussions on a Phase 2 deal", Vice President Mike Pence said in a Fox Business Network interview.
The US has agreed to reduce tariffs on Chinese products, but is expected to keep tariffs on about US$380b in goods.
The US also cut in half, to 7.5%, the USA tariffs on another $110 billion in Chinese goods. Neither party to the agreement, meaning the United States and China, "shall require or pressure, formally or informally, persons [including corporations] of the other party to transfer technology to its persons as a condition" of receiving permission to operate in the other party's market, the agreement says.
"I think we're going to look more closely at economic delivery, reporting levels of companies, and the amount of profits", he said. "This is clearly a first step, there is a long way to go in achieving everything the USA wishes to achieve".
"We now have a big investment in each other", President Trump said.
"The problem for the Trump administration is if it's not the Chinese government ordering additional purchases", Hillman added.
Hong Kong-based South China Morning Post reported that under the deal China has committed to buy $200 billion worth of goods from the USA in the next two years.
"The administration, in order to get a deal at all costs before the 2020 election, has thrown the American worker and American business overboard and they are going to be the ones left to face the consequences", he said. The Congressional Budget Office is estimating that tariff-related uncertainty has cut 0.3% off USA economic growth while reducing household income by an average of $580 since 2018.
"What we don't know until we read the text is which one is it", said Hillman, who was the former general counsel at the US International Trade Commission and has served on the World Trade Organization's highest court. However, Chinese tariffs on hardwoods have cut about 50% of the industry's revenue since 2017.Since the trade war, China has resorted to purchasing hardwood from other countries. While China has made clear progress on IP issues, US grievances have yet to be fully addressed.
Also of note for American tech giants will be a change to the local ownership requirements in China. "No one should be fooled by Trump's empty promises to deliver a meaningful "phase two" deal", he said.
The deal would include $50 billion in additional orders for U.S. agricultural products, Mr Trump said, adding he was confident that United States farmers would be able to meet the greater demand.