US Hails Trade Deals with China as 'Herculean Accomplishment', Confirms It Will Attend Beijing Summit

Yicai

2017-05-12

(Yicai Global) May 12 -- The US has announced that it will send a delegation to attend the Belt and Road Forum for International Cooperation to be held in Beijing May 13-14 as China and the US sign major trade deals. The US commerce secretary, Wilbur Ross, released a list of 10 important agreements signed between China and the US, covering various aspects of bilateral trade relations, including American beef and natural gas, Chinese poultry products and financial areas. Ross called the new deal between the world’s top two economies a “Herculean accomplishment.”

The Trump Administration hailed the deal as new achievements based on the 100-day action plan on bilateral trade cooperation agreed between China’s President Xi Jinping and Donald Trump during their meeting at Mar-a-Lago, Florida, the US, last month, a positive step toward redefining trade ties between the world’s two largest economies.

The 10 trade deals are:

1. China will allow US beef exports into its domestic market no later than July 16.

2. The US will begin the rule-making process to allow imports of cooked poultry from China.

3. China will evaluate US biotechnology products with pending applications and either approve them, or be transparent about why the products fail a safety test.

4. Chinese enterprises can negotiate all types of contracts, including long-term ones, for natural gas exports.

5. China will allow foreign-owned financial service firms to provide credit rating services in China.

6. China’s central bank and the US Commodity Futures Trading Commission will work toward an agreement on the oversight of cross-border clearing organizations.

7. China will take steps that lead to market access for US-owned suppliers of electronic payment services.

8. The US remains committed to treating Chinese banks the same as other foreign banks.

9. China will issue bond underwriting and settlement licenses to two qualified US financial institutions.

10. The US will send a delegation to the Belt and Road summit that aims to expand links between Asia, Africa and Europe, and will welcome China’s participation in a US business investment summit in June.

The US has agreed with the Chinese government on a broad range of measures aimed at improving the access by natural gas exporters, among others, to the world’s second-largest economy, reported The Wall Street Journal today, citing an informed source. The two governments will issue a joint communiqué later this month to promote and redress the balance in China-US trade, the source told the paper. The communiqué will be the first action toward the implementation of the agreement signed between the pair in April aimed at increasing American exports to China. China currently maintains a trade surplus with the US.

Zhu Guangyao, China’s vice-minister of finance, described the 100-day plan as one for cooperation, action and mutually beneficial development. China and the US will work on an annual economic cooperation plan, and the first ‘Comprehensive Economic Dialogue’ between the two countries will be held this summer.

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