Negotiators from the U.S. and China are scheduled to meet in D.C. today where after months of trade tensions, Beijing is said to be open to purchasing a wider array of U.S. goods and services, reports Fox Business.
President Trump has insisted that the countries reduce the $370 billion trade deficit with China by $200 billion, and officials from Beijing are expected to arrive in D.C. with ideas on how to do that.
Trump has accused the deficit of triggering the loss of millions of U.S. jobs that are consequently added to the Chinese economy.
China is likely to offer increasing its imports of aircraft, auto, natural gas and some agricultural commodities, Dan Ikenson, director of the Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies, told FOX Business.
He added that Beijing may also offer to give foreign companies greater access to its financial services industry. When a U.S. delegation led by Treasury Secretary Steve Mnuchin met with officials in Beijing last week, no deal was reached largely because China refused a demand to cut the trade deficit by $200 billion within the next two years.
When a U.S. delegation led by Treasury Secretary Steve Mnuchin met with officials in Beijing last week, no deal was reached largely because China refused a demand to cut the trade deficit by $200 billion within the next two years.
This also comes amid a surprising obstacle for Trump’s plan when a second-tier Chinese electronics maker, ZTE, said they would halt “major operating activities” after being penalized by the U.S. Department of Commerce.
Trump surprised many on Sunday morning when he said he was willing to rethink the punishment to save jobs at the Chinese phone company, which is off-brand for Trump’s usual stance of unfair Chinese trade practices.
Trump’s decision to lessen penalties took pressure off the American-Chinese relationship which is at a crucial moment before the meeting between Trump and Kim Jong-un next month.