United States And China Trade Agreement Touted ‘Herculean Accomplishment,’ Might Mitigate Trade Gap Between U.S. And China
With the United States and China trade agreement sealed, both the Chinese and the American markets will see better trade prospects as both opens door for beef from China and cooked poultry from China.
The U.S.-China trade agreement has been called a great advancement and the stepping stone on the trade front by the Trump administration and it might give trade in United States a great boost. It is expected that this agreement will America bridge the trade gap with the world’s second largest economy, ABC News reported.
Notably, the deal that came through after an April meeting between President Donald Trump and President Xi Jinping will see the export of liquefied natural gas by U.S. companies to China. It will also lessen the trade barriers that have been causing problems on the agricultural front and also for American financial companies that were in functioning in China. It must be mentioned here that the Commerce Secretary of the U.S, Wilbur Ross has called this “a herculean accomplishment.”
However, trade analysts have a different view. They do not think that the deal has much potential when it comes creating an overall impact on the economy of United States. According to reports from New York Times trade analysts are doubtful of the deal’ magnitude as it only contains modest steps. Additionally, China is just fulfilling its long tome promise of beef exports and electronic payments.
Additionally, the trade deal has got nothing in store to resolve issues related to automobiles and also social media. And, since there is nothing for open China market for U.S. manufactured goods, selling manufactured goods in China still remains a challenge.
Notably, while campaigning as well as during President Donald Trump’s initial days in office, his administration had brought a lot of focus on the U.S. and China trade deficit. Now, it remains to be seen how the deal is able to help in bridging the gap.