China and fourteen other countries signed a deal to set up the world largest trading bloc.
These 15 countries account to 30% of world population and 30% of global GDP.
The deal is the world largest Free Trade Agreement.
This is the first time China and Japan reached a bilateral tariff reduction arrangement.
Also, it is for the first time China, South Korea and Japan have come together in a single free trade agreement.
The agreement will lower the tariffs further.
Also, it is less comprehensive than the Trans-Pacific trade deal.
Unlike the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union Trade deal, it does not set standards on labour and environment.
CPTPP was signed between Canada, Australia, Japan, Mexico, Vietnam, Singapore, Peru, New Zealand, Malaysia, Chile, Brunei in 2018 at Chile.
India in 2019 opted out of the agreement mainly due to concerns of dumping manufactured goods from China.