China Agrees To Major Trade Concessions After Trump Meeting
Donald Trump went into his meeting with Chinese President Xi Jinping with several goals, none more important than reducing the trade imbalance between the two powers.
And it seems to have worked.
Beijing will reportedly offer the Trump administration greater market access for financial investments and beef imports in efforts to avoid a trade war between the two countries.
In conceding to some of Trump’s wishes, China is prepared to raise the investment ceiling in the “Bilateral Investment” treaty and plans to end the ban on importing American beef, The Financial Times reports.
The British publication claims that these concessions are not difficult for Beijing.
“At present, foreign investors cannot hold a majority stake in securities and insurance companies in China,” they wrote. “The country’s largest companies in these sectors, such as Citic Securities and China Life Insurance, have achieved enormous scale in the 15 years since the world’s second-biggest economy joined the World Trade Organization, making them formidable competitors for new entrants to the market.”
“The concession to allow majority foreign ownership was discussed during Barack Obama’s administration, when Chinese and US negotiators held several rounds of talks about a bilateral investment treaty, or BIT.”
China also plans to end a 14-year ban on U.S. beef imports and buy more grain and other agricultural products from the U.S. in efforts to reduce tensions surrounding the $350 billion annual trade surplus it holds against the United States.
The beef ban came after a rogue case of mad cow disease in the United States.
During the campaign, Trump threatened to declare China a “currency manipulator” on “day one” and slap tariffs on Chinese goods. But since taking office, Trump has moderated his rhetoric and taken a more pragmatic approach.
The two leaders seemed to genuinely get along, as raw footage of the two leaders showed Xi meeting Trump’s family.
The state-run Chinese newspaper Global Times said the meeting “served as an indicator that the China-US relationship is still very much on course since the Trump administration took office in January.”