China to buy more US goods to ease tensions

The U.S. and China said Saturday that two days of “constructive” talks between American and Chinese officials in Washington had led to an agreement for China to buy more goods and services — including “meaningful increases in United States agriculture and energy exports” — while the two countries work to defuse a brewing trade war.

The White House released a joint statement from both countries saying the U.S. would dispatch a team to China to work out the details, which will include expanding trade in manufactured goods and stronger “cooperation” in enforcement of intellectual property protections. The joint statement, which had been expected Friday evening after the talks ended, said the goal is to “substantially reduce the United States trade deficit in goods with China.”

The announcement comes after National Economic Council Director Larry Kudlow said Friday that China had agreed to purchase “at least $200 billion” in additional goods and services in a bid to sharply reduce the $375 billion U.S. trade deficit with China. The Chinese government has not confirmed that number, and Saturday’s statement lacked any specific dollar amounts or indications that Beijing had bowed to President Donald Trump’s demands for far-reaching changes in its industrial policies, which the president says disadvantages U.S. companies.

With China’s total merchandise orders from the U.S. last year amounting to just $130 billion, many economists are skeptical that Chinese customers can increase their U.S. orders by $200 billion annually, which Trump set as his goal prior to the first round of talks in Beijing earlier this month.

Though the statement lacked many specifics, its repeated references to “consensus” between the two sides after months of sniping over trade suggested that a damaging commercial conflict could be avoided. The president had threatened to impose tariffs on up to $150 billion in Chinese imports. China had vowed to retaliate.