China has agreed to buy more US imports of goods and services, reducing the trade imbalance between the two countries and calming fears of a trade war between the world’s two biggest economies.
While Washington has stopped short of saying how much more China has agreed to buy, it says the move will “substantially reduce” its current $335bn annual trade deficit with Beijing, the BBC reports.
Donald trump has long criticised what he calls the theft of American intellectual property, particularly in technology and copyright, by Chinese firms.
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Earlier this year his administration imposed huge tariffs on imports of steel and aluminium, and the president has threatened further tariffs on up to $150bn worth of Chinese goods.
China currently sells the US $462.bn worth of goods a year, far more than it buys, but has threatened to impose similar tariffs on US imports, among them aircraft, soybeans, cars, pork, wine, fruit and nuts, in a tit-for-tat escalation.
However, the two sides, which have been locked in negotiations for weeks, appear to have stepped back from a full-on trade war with the latest commitment.
Announcing details of the deal, Chinese state news agency Xinhua on Sunday declared the agreement as a “good example of win-win”, adding it would help the US reduce its trade deficit and allow China to raise the quality of its imports.
The statement concluded: “Both sides agreed to encourage two-way investment and to strive to create a fair, level playing field for competition.”
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