Unanswered phase one deal question is what imports China commits to (and the caveats)

Author: Adam Button | Category: News

Will there be a hard target? What about pricing?

Will there be a hard target? What about pricing?
Reuters today reports that China has pledged to buy nearly an additional $80 billion in manufactured goods from the US over the next two years plus $50B more in energy supplies. The deal also calls for Chinese purchases of agricultural goods to increase $32B over two years and imports of US services by about $35 billion.

However some of the details may be kept secret and instead we would get targets for four broad areas: energy, manufacturing, services and agriculture with a total near $200B above the 2017 baseline.

From the Chinese side they risk running afoul of WTO rules and the multilateral system they're trying to uphold. However that could be mitigated by provisions in the deal that say the US will have to provide the goods at competitive prices.

Global Times editor (and party mouthpiece) Hu Xijin appeared to confirm the deal with that caveat:

As far as I know, China did make a commitment to expand imports from the US. China has a huge market which is growing quickly. It will be more of a test for the US whether it can provide enough products that Chinese market welcomes and are competitive in price.



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