China has committed to buy nearly $80 billion of additional produced items from the U.S. for the next two years as a part of a trade conflict truce, in accordance with a source. However, some U.S. trade consultants call it an unrealistic target.
Under the preliminary trade agreement to be inked on Wednesday in Washington, China would also purchase over $50 billion more in energy provides and boost purchases of U.S. services by around $35 billion over the same interval, the source, who was briefed on the agreement said Monday.
The deal further requires Chinese purchases of U.S. agricultural products to increase by some $32 billion for two years, or virtually $16 billion a year, stated the source.
When combined with the $24 billion U.S. agricultural export baseline in 2017, the sum gets near the $40 billion annual targets outed earlier by U.S. Prez Donald Trump.
In total, China committed to purchasing $200 billion more in U.S. goods and services for the following two years, while Washington waved some tariffs that had been due to go into effect and halved others.
The U.S. tariffs stay in effect on $360 billion of Chinese goods, about two-thirds of the total.
The trade agreement doesn’t include a settlement for a future reduction in tariffs on Chinese items, U.S. Trade Consultant Robert Lighthizer and Treasury Secretary Steven Mnuchin mentioned in a press release Tuesday afternoon.