China, US reach agreement on beef, poultry and natural gas

Owen Stevens
May 12, 2017

The White House announced Thursday that the us and China have reached an agreement on trade polices related to beef, poultry and natural gas that are expected to increase American exports.

The trade talks between the two countries began after Chinese President Xi Jinping visited President Donald Trump at his Mar-a-Lago Florida resort home in early April.

According to the U.S. Department of Commerce, China has pledged to start allowing imports of U.S. beef that meets global safety standards.

US Commerce Secretary Wilbur Ross said the initial agreement, which would also open up the Chinese market to US electronic payment services companies and help Chinese banks gain broader access to the US financial market, would help "bring down" the US trade deficit with China, though he did not provide a precise estimate.

The agreement could mark new opportunities for the U.S. agricultural, energy and financial sectors, which have often struggled for market access in China, Dollar said. China will finally open its borders to USA beef while cooked Chinese poultry is closer to hitting the American market as pa. In return, the US has agreed to remove obstacles to China's imported poultry meat.

The announcement is also another indication that Trump is nurturing good relations with China after pledging to take punitive measures against the country during the United States presidential campaign.

The joint statement said the United States would send a delegation to China's One Belt, One Road summit on Sunday and Monday.

Another significant breakthrough will see American liquefied natural gas (LNG) going to China.

This is "a very big change", said Ross, noting China is trying to wean itself off coal at a time "it doesn't produce enough natural gas to meet its needs".

China is to issue bond underwriting and settlement licenses to two qualified USA financial institutions by July 16.

Beijing will also allow US -owned card payment services to begin the licensing process in a sector where China's UnionPay system has had a near monopoly. Those that pass the tests are to get certificates within 20 working days.

A U.S. -China Comprehensive Economic Dialogue will be held this summer, according to the Commerce Department, to deepen engagement on these and other issues.

Other reports by VgToday

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