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Increased Imports From US For 6 Years Offered By China: Reports

Increased Imports From US For 6 Years Offered By China: Reports
According to a news report published in CNBC, an offer of a six year boost in its imports have been offered by China in its ongoing talks and negotiations with the United States on reduction of trade conflict, ironing out of trade related issues between the two largest economies of the world and a possible trade agreement.
According to a report published by Bloomberg News, the offer to the US trade representatives was made by Chinese officials while the two parties were holding negotiations in Beijing earlier in January this year. The Bloomberg report quoting officials claimed that an offer of enhancing of its annual import of U.S. goods by a combined value of more than $1 trillion was made by China to the US trade representatives. The first reports about the details of the offer of increasing of US imports by China were published by Bloomberg.
CNBC reported quoting US government sources that the proposal from China to the US outlined its plan to make more purchases of US goods till 2024 – the year when US president Donald Trump would be possibly be again running to get re-elected to the post.
In 2018, there was a trade deficit of $323 billion in the trade between the US and China - tilted towards China. The Bloomberg report quoting more than one official source that the Chinese offer would effectively reduce the annual trade deficit between the two countries to zero by 2024.
These reports brightened the chances of an ultimate trade agreement between the US and China and reduction in the trade hostilities between the two countries which resulted in a rise in US stocks to their highs of the day on Friday.
There a report published in the Wall Street Journal which claimed that the US Treasury Secretary Steven Mnuchin had mooted the idea of reducing the trade tariffs that the US administration has imposed on Chinese goods worth billions which was accepted very positively by the markets globally on Thursday which resulted in a rise in stocks on the overall. But according to a more recent report published by CNBC quoting a Treasury Department spokesperson working with the U.S. trade negotiations teams claimed to be saying that "neither Secretary Mnuchin nor Ambassador Lighthizer have made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China."
The negotiations between the two parties is expected to be carried on during the Washington visit of China's top trade negotiator, Vice Premier Liu He, on Jan. 30 where he is expected to hold talks on trade with U.S. trade representative Robert Lighthizer for two days.
Additional import tariffs on Chinese goods worth about $250 billion have already been imposed by the Trump administration and it has threatened ot impose more tariffs and increase the current tariffs. According to an agreement between Trump and Chinese president Xi Jinping, both the sides agreed to a 90 day truce in the trade war to allow both sides to seek ways to reduce the trade conflict. The ongoing negotiations between trade representatives of the US and China is a part of that agreement.

Christopher J. Mitchell

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