China ready to sweeten deal by buying American goods - report

Author: Adam Button | Category: News

Officials discussing text of the deal

This has been doing the rounds for the past 15 minutes. It outlines what would be a broad deal on trade and it highlights that officials are already working on a text.

They cited an anonymous source.

As part of the discussions, China has offered to buy American products in exchange for a delay in a series of US tariffs and easing of a supply ban against Chinese telecommunications giant Huawei Technologies.

The source said China could also offer more market access, better protection for intellectual property and to cut excess industrial capacity, but would be more reluctant to compromise on subsidies, industrial policy and reform of state-owned enterprises.

This sounds like an interim deal while they work out more, something that has been rumored. But it could also be read as a broad deal.

Ominously, the report also notes that Beijing increasingly believes that any deal now is simply a ceasefire and that the US is committed to curbing China in the long term.

In Beijing, the leadership is putting the focus on the longer term, suggesting that a trade deal with the US would be just a trade war truce.

In a speech last Tuesday, Chinese President Xi Jinping urged the Communist Party to embrace a long-term struggle against a range of risks.

This is beginning to get some traction and helping risk trades.

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