As the ongoing United States-China trade deal aims at long term changes to the national economy, Donald Trump is pushing his negotiators to ensure that the deal gets China to agree to purchase more goods from the United States and thus reducing the trade deficit.
In the deal, China is expected to purchase over $1.2 Trillion in agriculture, United States energy and aircraft products over a period of six years. The comes one and a half month after the discussion between united states president Donald Trump and Chinas counterpart Xi Jinping held a meeting during the g20 meeting in Buenos Aires.
Many feel that the deal is a fair deal, but Trump wants the number to double and even if possible to triple. This is making the negotiation gap to increase between the United States negotiations and China negotiators. According to Trump, the negotiation was going on well and we should expect a deal sooner than we expect.
One of the promises that Donald Trump had promised the American people is that he will close the trade deficit and he plans to achieve this through the deal with the Chinese government. Achieving the deal will give him an upper hand as the 2020 presidential elections get closer.
Boeing jets are the biggest-ticket items the Chinese could add, but China’s appetite to buy more has stalled with the global grounding of the 737 Max 8 and 9 jets.
“If China’s not able to buy more Boeing jets — and China’s not allowed to buy sensitive technology and defense products — there’s not a lot of room to increase the preferred shopping list,” said Gene Ma, head of China Research at the Institute of International Finance.