Beijing, Dec 21 (IANS): The phase one economic and trade deal between China and the US does not only benefits the two economic giants but also the whole world, Chinese President Xi Jinping said.

In a phone conversation with his US counterpart Donald Trump, Xi on Friday noted that the two countries have reached the phase-one agreement on the basis of the principle of equality and mutual respect, reports Xinhua news agency.

Against the backdrop of an extremely complicated international environment, the agreement benefits China, the US, as well as peace and prosperity of the whole world, Xi said.

For his part, Trump said that the agreement was good for the two countries and the whole world.

Noting that both countries' markets and the world have responded very positively to the agreement, Trump said that the US was willing to maintain close communication with China and strive for the signing and implementation of the agreement at an early date.

Xi stressed that the economic and trade cooperation between China and the US has made significant contributions to the stability and development of bilateral relations and the advancement of the world economy.

Trump further said that he was looking forward to maintaining regular communication with Xi by various means, a move which was also agreed by Xi.

According to the two countries, the phase one agreement addresses issues including technology transfer, intellectual property, trade expansion and the establishment of mechanisms for dispute resolution.

Trade tensions between the two largest world economies, which began last year, have had profound global consequences.

The latest global growth forecasts lowered projections of expansion to 3 per cent this year, 0.2 less than in July, according to the International Monetary Fund figures published in October.