China will expand purchases of US manufactured goods in trade deal, says source

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China has pledged to buy nearly $ 80 billion in additional US manufactured goods over the next two years as part of the truce in the trade war, according to one source.

Under the terms of the trade deal to be signed on Wednesday in Washington, China will also buy more than $ 50 billion more in energy supply, and will increase US service purchases by about $ 35 billion in the same. two-year period, the source told Reuters on Monday.

Phase 1 of the deal calls for Chinese purchases of US agricultural products to increase by about $ 32 billion in two years, or about $ 16 billion a year, the source, who was informed of the deal, said.

When added to the $ 24 billion US agricultural benchmark in 2017, the total comes close to US $ 40 billion annual target announced by US President Donald Trump.

The figures, due to be announced on Wednesday at a White House signing ceremony between Trump and Chinese Vice Premier Liu He, represent a surprising increase from recent Chinese imports of US industrial products, raising some skepticism about how they will be achieved.

Two other sources familiar with the deal agreed on the purchase details without providing specific numbers.

A spokesman for the US Trade Representative's office could not be reached immediately for comment.

Source: Agricultural News