To avert a trade war with the United States, China has reportedly agreed to provide concessions to the inbound products and services from the United States. After holding a two-day meeting, the administrations of the US President Donald Trump and the Chinese President Xi Jinping have agreed to a 100-day plan aimed at increasing US exports in China in order to reduce $374 billion trade deficits in goods with the Chinese.
Analysts are encouraged by the fact the US is choosing a path to improve trade balance rather than limiting imports from China to the United States. Both, the treasury secretary Steven Mnuchin, and the commerce secretary Wilbur Ross said that the Chinese officials have agreed on the need for a more balanced trade relationship. Mr. Ross said, “They expressed an interest in reducing their net trade balance because of the impact it’s having on money supply and inflation……..That's the first time I’ve heard them say that in a bilateral context.”
It is, however, not clear to many that what can actually be achieved in 100 days, especially when the usual trade talks between the two have taken years not days in the past. President Trump has also reportedly accepted the invitation from President Xi Jinping to visit China.
