China, United States agree on a package factory jobs agreement

China and the United States have agreed on a $1.1 billion package factory job package for the Southeast Asian nation, the White House said on Monday.

The deal will be announced by White House spokesman Mark Toner on Monday, the announcement of which comes amid rising tensions between Washington and Beijing over territorial disputes in the South China Sea.

The agreement, first reported by the South Korean news agency Yonhap, would be the first of its kind to include the South, which is one of the world’s largest exporters of goods, including clothing, cosmetics and pharmaceuticals.

The pact will also provide a massive boost to the US manufacturing sector, which has been mired in stagnation for more than a decade due to a global slowdown and a sharp drop in China’s economy.