US, China Reach Deal That Will Reduce Massive Trade Deficit With Beijing

Lauren Perry
May 20, 2017

The Plan states that following one more round of technical consultations, US beef will be granted access to China, in accordance with global standards.

"USMEF welcomes today's announcement that the United States and China have reached a high-level agreement that will allow USA beef to re-enter the Chinese market after a prolonged absence of more than 13 years". It covers a range of long-standing barriers from agriculture to energy to the operation of American financial firms in China.

In announcing the agreement on Thursday evening, US Commerce Secretary Wilbur Ross said "US-China relationships are now hitting a new high, especially in trade". Gary Cohn, director of the National Economic Council, has voiced support for an LNG terminal in the U.S. Northwest that would ship overseas to Asia.

Additionally, he explained the strategy behind creating the trade deal.

"We believe that Sino-U.S. economic cooperation is the trend of the times", Chinese Vice Finance Minister Zhu Guangyao told reporters in Beijing.

By July 16, the 100th day after the leaders' meeting, China agreed to issue guidelines that would allow US-owned card payment services "to begin the licensing process" in a sector where China's UnionPay system has had a near monopoly. Previous administrations have hailed market-opening agreements only to be left disappointed. Later, Ross said the U.S. And there's some important elements to the agreement that they announced, but it is really just a first step.

"The 100-day China-U.S. economic plan is a plan of cooperation, a plan of actions and a plan of win-win arrangements", Zhu said. It had been suggested that President Trump's latest softening of stance over China and the agreement of a trade deal, could be seen as a way to secure potential leverage over China with regards to asserting its influence in the region and escalating the situation with North Korea.

In the energy sector, the USA already is shipping some liquefied natural gas to China and said it could negotiate any type of contract, including long-term contracts, with United States suppliers.

"I spent 11 days in China", Miller said in an April interview with EverythingLubbock.com. Opening up the Chinese market will allow our beef to compete in a market estimated at $2.6 billion for the United States beef industry. "It's not as though this is going to wreck anybody's pocketbook".

China has reportedly avoided USA -imported beef since 2003 because of concerns about mad cow disease and hormone use.

"This was pretty much a herculean accomplishment to get this done", he said. As a result, economic benefits to USA energy companies would not immediately materialize, said Jake Parker, vice president of the U.S.

The agreement would also streamline the evaluation of USA biotechnology product applications; pave the way for allowing American-owned suppliers of electronic payment services to begin the licensing processes in China; and facilitate the entrance of Chinese banks into the US banking market. The areas dealt with in the initial agreement represent export opportunities that American companies have long sought.

China and the U.S. had previously committed to more market access on most of these trade issues over the years but implementation had been repeatedly delayed. The agreements will also help reduce Washington's trade deficit with Beijing.

Last month, Sen. Steven Daines hand-carried a cooler full of Montana beef to Chinese Premier Li Keqiang in Beijing as part of a delegation whose mission was to help set the stage for trade talks. Get twice-daily updates on what the St. Louis business community is talking about.

Other reports by VgToday

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