China has agreed to purchase about $80 billion in additional products made in the United States as part of a trade war settlement over the next two years, according to a report which is likely to boost plane maker Boeing’s needs.
Under Wednesday’s trade agreement in Washington China is also importing more than $50 billion in energy supplies, raising US utility imports by about $35 billion across the same two-year period, Reuters said on Monday. According to the author.
The number of Chinese Vice Premier Liu He’s set to reveal on Wednesday in the White House ceremonial is a massive improvement in previous Chinese imports of US manufactured goods that would create a sense of doubt about how this would be done.
BEYOND THE FARM
While giving specific figures, two other sources familiar with the exchange in Phase 1 refer to the bare overview of the sales.
A US Representative of the office of the Trade Representative cannot be reached for comment immediately. They said they would announce targets for the four broad areas, but would identify individual products to avoid manipulation of the industry.
Although China was seeing potential for increased purchases of wheat, soybeans, sorghum, dried distillery grains and certain maize, analysts and traders wondered that such an improvement might be absorbed. He said they would focus on the United States to put China too strongly at risk of price and supply.
One of the news reports, without providing the names of individual manufacturers, said the rise of 80 billion dollars for manufactured goods involves large automotive, car parts, aircraft, farm equipment, medical devices, and semi-conducers.
As the US-China trade deal does not resolve any of the non-tariff obstacles that have stopped these US exports from being withdrawn from the Chinese market for years, including procurement regulations, consumer requirements or subsidies to the Chinese state-owned companies, Beijing’s sources of skepticism regarding manufactured goods commitments.
China is also committed to pumping purchases of U.S. products into the very manufacturing sectors, fueling further skepticism.