File photo: Donald Trump and Xi Jinping leading talks at G-7 summit in July 2017, Credit: The White House/ Wikimedia Commons
China is offering massive trade concessions to the United States worth billions of dollars under a new deal that officials of the two countries are negotiating in Washington.
China’s vice premier Liu He had a private meeting with President Donald Trump in the Oval Office on Thursday and officials from both countries may finalize the new deal on Friday.
The meetings take place in the wake of President Trump’s vow to impose tariffs on Chinese imports as part of efforts to address the trade imbalance, which heavily favors Beijing. The fear of a drawn out trade war between the two largest world economies could trigger implications for brother international investment and trade. President Trump and his Chinese counterpart Xi Jinping had started off on a positive note, when Trump hosted the Chinese leader early in his term. But Trump had also promised during the election campaign that he would fix unfair trade that hurt America.
The New York Times reported on Thursday, China is pledging to “buy substantially more American goods, including agricultural products like soybeans, as well as semiconductors and natural gas.
“That could theoretically reduce its trade surplus with the United States — which hit $372.5 billion last year — by up to $200 billion, though the real number would most likely be lower.”
However, the newspaper cited experts who doubt that China could buy American products such a big amount, even if they chose to purchase big ticket items from America like planes that it currently buys form Europe.
The CNN also contemplated if China is trying to sidestep the trade war with the United States.
Beijing has pitched boosting Chinese purchases of US goods by about $200 billion during the current trade talks going on in Washington, the channel reported, quoting U.S. officials.
“But it’s just a proposal at this point, and earlier this morning China’s foreign ministry called the $200 billion number an “untrue rumor.”
China bought $130 billion worth of American goods last year, according to the channel.
In return for the enormous trade concessions, China is seeking United States’ waiver of tariffs and investment restrictions against Chinese companies.
According to The Times, Beijing is also demanding U.S. lift sanctions on the telecommunications giant ZTE, “which faced ruin after losing access to its American suppliers, and relaxing export controls that prevent American companies from selling sensitive technology to China.”
