Published: Sun, May 14, 2017
Money | By Armando Alvarado

US, China sign 10-point trade deal

US, China sign 10-point trade deal

American beef exports dropped from $3 billion to $1.1 billion by 2004, but the market has since recovered to pre-2003 levels without exporting to China.

The United States and China have struck a deal that will see Beijing lift a ban on US beef, allow imports of liquefied natural gas and increase access for USA financial firms.

As expected, China has granted a few token trade concessions to the Trump Administration, including allowing American beef to be imported into China for the first time in 14 years.

The United States also signaled that it was eager to export more liquefied natural gas (LNG), saying China could negotiate any type of contract, including long-term contracts, with US suppliers.

The takeaway: "It's a lot like Trump's executive orders that talk a lot but didn't do much", according to the former USA official. "Half of the $340 billion in annual semi-conductor sales flows to USA tech giants such as Intel, Qualcomm, and Apple". Ross told reporters at a briefing.

By mid-July at the latest, China will accept shipments of US beef, said a US Department of Commerce news release.

China imports about $2.5 billion in beef from other countries. US electronic payment providers will gain access to the Chinese market, while Chinese banks should gain broader access to USA customers.

A new trade deal between the USA and China will allow the U.S.to break back into that beef market.

While Trump has said that he was willing to agree to less favorable trade terms for the United States in trade negotiations with China in order to enlist China' support in stopping North Korea's aggressive nuclear and ballistic missiles programs, Ross said there was no "quid pro quo in these discussions".

Although Mr Trump and his aides still complain regularly about the more than $300bn USA trade deficit with China the new USA president has begun to express a greater appreciation for the complexities of geopolitics.

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Close watchers of the US-China relationship quickly raised questions about the deal, pointing out that most of Beijing's key promises had been made before or were in line with China's existing worldwide commitments.

"The challenge is selling manufactured goods into China — there isn't anything in this deal to suggest China is going to become more open to USA -manufactured exports", said Brad Setser, a senior fellow at the Council on Foreign Relations.

The U.S. also revealed it will send a delegation to represent the U.S.at an upcoming forum in Beijing for China's massive One Belt, One Road initiative, a major global trade project. And it allows the import of cooked poultry from China, and will send United States of America delegates to a Chinese forum on building infrastructure in Asia and Europe.

Randal Phillips, Mintz Group's Beijing-based managing partner for Asia, said that Washington was too focused on selling more to China and should instead seek to address structural imbalances created by Chinese industrial policies and barriers to investment.

"We have been anticipating this announcement and have already been working to build key partnerships in China for Nebraska", Nebraska Department of Agriculture Director Greg Ibach said in a statement.

The agreement covers 10 areas where negotiators from the two sides have reached consensus, including agricultural trade and the issuance of both bond writing and settlement licenses to two qualified USA financial institutions.

American enterprises like Visa and Mastercard will get access to the Chinese market and two banks will get bond underwriting licenses.

NORTHAM: There may be more progress when negotiators from the US and China meet again this summer to continue work on trade issues.

A guarantee by the U.S.to treat Chinese banks operating in the U.S.no different than banks from any other country.

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