China Offers to Buy Nearly $70 Billion of U.S. Products to Fend Off Trade Tariffs.
China offered to purchase nearly $70 billion of U.S. farm, manufacturing and energy products if the Trump administration abandons threatened tariffs, according to people briefed on the latest negotiations with American trade officials.
In weekend talks in Beijing, Chinese negotiators led by Liu He, President Xi Jinping’s economic envoy, presented a U.S. team headed by Commerce Secretary Wilbur Ross a package that includes Chinese companies buying more U.S. soybeans, corn, natural gas, crude oil, coal and manufactured goods.
Chinese and U.S. officials estimated the value of the package at nearly $70 billion in the first year.
President Donald Trump has pressed China to commit to reduce the $375 billion U.S. merchandise trade deficit with China by $200 billion. Chinese officials are arguing this could go a long way toward meeting that target.
Wow, they’re actually having to offer something rather than just demand and take from our feckless negotiators.
They can buy the pork mehiko is putting a tariff on.
It is winning. It will seem like a pittance to detractors, so gird yourselves because we all know what towering economics and trade analysts these people are, right?/sarc
It’s a good start and it needs to be even greater, but I don’t know how much leverage China is wielding vis NoKo denuclearization.
Take the illegals, too and we have a deal.
Not really. The US-China trade deficit this year will be at least $400 billion (and growing) and $70B is less than 20%n of that. That’s 2% of US GDP lost forever every year (3.3% of China’s GDP gained). If you assume the velocity of money is 4x/year (actually 4.5-5x/year in US), that is 8% of US GDP lost by trading with China.
Better to restrict Chinese, German and Mexican and Japanese imports (deficit of $600 billion/year) and rebuild the US industrial base and the middle class.
@Major Mal — Thank you. I didn’t want to rain on the parade. But it at least heading in the right direction for once.
Math is hard
this is their first offer. negotiations are upcoming. MAGA!
Well that’s $70B more than we started off with. That’s $70B more than Jeb or Rubio or Hillary would have gotten. But remember how smart they all are and they are polished and read the Washington Post and New York Times and they don’t embarrass us with their MAGA talk…
China offered 70 B?
If I know Mr. Trump, he’s already countered with a better offer for US.
My God, what a difference a mature adult leader of the free world makes!