This opening up of China’s market follows President Trump’s two-day summit with President Xi at his Mar-a-Lago club in Florida last week.
Graham Lanktree reports:
… Chinese officials who spoke to the Financial Times said that President Xi Jinping is offering to lift China’s 13-year-long ban on U.S. beef and buy more American grain and agricultural products. That comes alongside an offer to increase the stake that American financial firms can hold in Chinese insurance and financial asset companies.
This opening up of China’s market follows President Trump’s two-day summit with President Xi at his Mar-a-Lago club in Florida last week. And although many aspects of these offers were in the works before Trump took office, trade experts say they represent a win for his administration.
On Saturday Trump tweeted “it was a great honor to have President Xi” at his home and that a friendship was forged between the two leaders, “but only time will tell on trade.” The summit, which took place on Thursday and Friday ended without a press conference or major announcement.
In January, Trump threatened to impose a 45 percent tax on Chinese imports, and has used strong rhetoric against the country—calling China the “grand champions” of currency manipulation, and accusing the Chinese of “taking out massive amounts of money & wealth from the U.S. in totally one-sided trade.”
Trump’s stance threatened a trade war over the more than $300 billion trade deficit the U.S. has with China and would have wrecked both the American and Chinese economies, according to international trade experts. If Trump sought to tax Chinese imports at a higher rate, they could respond in kind with their own tariffs.
President Trump’s rhetoric wouldn’t “make for good economic policy” said Michael Plouffe, an expert in foreign economic policy at University College London, in an interview with Newsweek ahead of the meeting. Plouffe said an informal agreement between the two leaders to make things easier for American producers competing with Chinese imports would be the most likely outcome from the meeting.
After a summit with U.S. President Donald Trump on Thursday and Friday China has offered to end a 13-year ban on American beef and open its financial market to more American investment. Carlos Barria/Reuters
“I think it’s in the best interest of both parties to have this come off as looking…to reduce the distance between the two sides,” Plouffe said. “That would be seen as a win.”
After the two leaders met on Friday, Secretary of Commerce Wilbur Ross said at a press briefing, alongside Secretary of State Rex Tillerson and Treasury Secretary Steve Mnuchin, that China and the U.S. agreed to a 100-day plan for trade talks to lay out how they will rebalance imports and exports. Although Ross acknowledged it is “a very, very short time” for trade negotiations, which are usually measured in years.
Tillerson said that during the summit with Xi, Trump underscored the need for China to take “concrete steps to level the playing field for American workers, stressing repeatedly the need for reciprocal market access.”
A request for comment and confirmation of China’s offer were not returned by the U.S. Department of Commerce. The president has yet to announce whether he will accept any deal with China, and the meetings seemed to have little impact on world markets on Monday April 10. … (read more)