Economy

China, US reach agreement on beef, poultry and natural gas

China, US reach agreement on beef, poultry and natural gas

In response to a request by the Meat Institute and other industry partners, President Donald Trump raised restoration of US beef access to China in his summit with Chinese President Xi Jinping last month and has made beef access a reality.

Last month, Trump vowed to terminate or renegotiate the South Korea free trade deal, which took effect just five years ago, calling it a "horrible" deal for the United States.

China is ready to start importing United States beef for the first time in 14 years, following last month's trade talks between president Donald Trump and Chinese premier Xi Jinping at Trump's Florida beach resort. "This is REAL news!"

However, after the trade deal was announced, China's vice-minister of finance, Zhu Guangyao, said economic issues should not be politicised. "I think people are coming to realize Chinese beef isn't necessarily worse", Sun said.

The agreement is "underwhelming" and "mostly aspirational, " an worldwide trade expert tells Axios - note the language: the us "welcomes China", China "may proceed", the U.S. "Right, as soon as the president got elected they went the other way", said Mnuchin. On May 4, Commerce Secretary Wilbur Ross called out Mexico and Japan for their trade surpluses with the United States, which he said were growing at "an alarming rate".

"The nature of this relationship is mutually beneficial". Both sides also identified other issues that will require significant effort to resolve and achieve progress on within the 100-day period, the US Department of Commerce said in a statement.

During last year's election, Trump had threatened to impose trade tariffs and label Beijing a currency manipulator, neither of which he has done.

It marks the first concrete result of the April meeting between President Xi and President Trump and is part of the 100-day action plan on economic co-operation laid out by the two leaders.

Trump praised the trade deal in a tweet Friday morning.

The agreement "won't make any meaningful difference to the bilateral trade imbalance, which could still trigger a flare-up of tensions between the two sides in the future", it said.

In addition, the US announced it would welcome investment from Chinese entrepreneurs while China said foreign-owned financial groups would be welcome to offer credit rating services in China by July 16, the Financial Times reported.

The deal will also open up USA exports of liquefied natural gas to China. Beijing had already made a decision to lift the import ban on American beef in September, before Trump was elected.

Sen. Pat Roberts noted China has grown into the largest beef market in the world, yet American beef had been shut out of it for more than a decade.

The agreement also calls for China to issue bond underwriting and settlement licenses to two qualified USA financial institutions by July 16.

"The China beef export market is estimated at $2.6 billion".

Foreign-owned firms will also be able to provide credit rating services in China.

China will issue bond underwriting and settlement licenses to two US financial institutions by July 16.