While there was no mention of the $200 billion target the United States had stressed on earlier, the U.S. and China have announced their agreement where the later would significantly increase the purchasing U.S. products and services. The countries made this announcement on Saturday.
There is a $335 billion annual U.S. goods and services trade deficit between U.S. and China and the two countries would continue deliberating about possible future measure that would see China importing more energy and agricultural products from the U.S. so that the existing trade deficit and be reduced.
There were no mention of whether the two countries would drop their threats of the imposition of trade tariffs worth billions of dollars after the conclusion of the trade talks in Washington between trade representative of the two countries.
“There was a consensus on taking effective measures to substantially reduce the United States’ trade deficit in goods with China,” said the countries in a joint statement.
“To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services.”
Based on allegations of theft of U.S. intellectual properties by China via forcing joint ventures of U.S. companies with Chinese companies to do business in China, the Trump administration had threatened to impose trade tariffs that worth $150 billion on Chinese goods imported into U.S. .
While refuting all such allegations China had also threatened back with equal tariffs on U.S goods that could include some of the largest commodities of U.S. exports such as aircraft, soybeans and automobiles.
The statement from the two countries was described as “vowing not to launch a trade war against each other” in a report in China’s state-run Xinhua news agency.
There was no mention of the tariffs even though the joint statement said that the two countries would engage at high levels and “seek to resolve their economic and trade concerns in a proactive manner.”
For the need to create “favorable conditions to increase trade” in manufactured goods and services, there has to be a consensus between the U.S. and China., the statement said. That could relate to the earlier promises by China to open up more economic sectors to services.
While noting that the statement and the decisions taken would aid in reducing the trade deficit of America through the enhancement of exports to China and will also give China the opportunity to diversify and raise the quality of its imports, said a commentary published by Xinhua on Sunday which also described the joint statement to be a “good example of win-win”.
The commentary also said that China has never compromised or accepted restrictive conditions and that the country had always stood up to any “unreasonable demands” by the United States.
(Adapted from Reuters.com)