Beijing agrees to import more from America

WASHINGTON/BEIJING: THE TWO SIDES ISSUE A JOINT STATEMENT VOWING NOT TO LAUNCH A TRADE WAR AGAINST EACH OTHER

China and the US have averted a trade war by reaching an agreement Sunday under which Beijing has agreed to “significantly increase” its purchases of American goods and services to reduce $375 billion trade deficit with Washington.

After lengthy second round of talks in Washington, the two sides issued a joint statement early Sunday vowing not to launch a trade war against each other. “There was a consensus on taking effective measures to substantially reduce the US trade deficit in goods with China,” the joint statement said.

This will help support growth and employment in the United States.

US President Donald Trump has threatened punitive measures against Chinese goods if Beijing does not cut down the trade deficit by $100 billion in a month and $200 billion by 2020.

US says it has $375 billion trade deficit in $636 billion total trade last year. China says the trade deficit is around $200 billion.

China too threatened a tit-fortat retaliation but blinked in the end with a categorical undertaking to import more goods from US.

The two sides agreed on meaningful increases in United States agriculture and energy exports. The United States will send a team to China to work out the details, said the joint statement at the conclusion of the trade delegation level talks between the two countries.

The United States delegation included Secretary of the Treasury Steven T Mnuchin, Secretary of Commerce Wilbur L. Ross, and United States Trade Representative Robert E. Lighthizer. The Chinese delegation was led by Vice Premier Liu He, the Special Envoy of President Xi Jinping.

The two sides also discussed expanding trade in manufactured goods and services.