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The end of the trade war? China plans to buy US goods worth $ 1 trillion

The end of the trade war? China plans to buy US goods worth $ 1 trillion

China has extended the olive branch back to the United States by offering a path to eliminate Washington’s burgeoning trade deficit with the country, Bloomberg reported Friday. The news comes less than a day after The Wall Street Journal reported that the Trump administration was considering lifting tariffs amid the ongoing trade war.

Citing sources familiar with the matter, Bloomberg reported Friday that China has offered to significantly boost its purchase of U.S. goods over a six-year period in an effort to re-balance trade between the two superpowers. By increasing its annual imports from the United States, Beijing would reduce its trade surplus to zero by 2024. That would require a spending boost of more than $1 trillion. Last year, Beijing’s surplus with the U.S. stood at $323 billion.

Last week marked the first face-to-face meetings between Chinese and American trade delegates since the G20 summit. The meetings, which went a day longer than planned, resulted in China agreeing to purchase more U.S. farm and agricultural commodities. Chinese officials have also agreed to grant wider access to mainland markets to U.S. firms. Several risks stand in the way of a comprehensive end to the trade war. Chief among them is the ongoing drama involving Huawei Technologies Corp. U.S. federal prosecutors are following up on civil lawsuits against the tech giant by launching a wider investigation into the company. According to The Wall Street Journal, the investigation has reached an advanced stage and could lead to an indictment shortly.

Bye Bye Trade War? China Plans $1 Trillion Buying Spree to Reduce US Trade Deficit, CCN, Jan 21

Source: FxPro

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