The head of a government-sponsored trade association in China says Beijing could remove extra tariffs on U.S. farm goods to smooth the way for importers to potentially buy up to $50 billion in products.
A Reuters article says Beijing would make that move instead of directing importers to purchase specific amounts of goods. President Donald Trump said earlier in October that China would be buying anywhere between $40 and $50 billion worth of agricultural goods as part of a “Phase One” deal to pave the way for an end to the trade war that broke out in 2018. However, that number has become problematic as China wants to purchase U.S. ag products based on market conditions, rather than commit to a specific number.
The President of the China Chamber of Commerce for Import and Exports of Foodstuffs says, “What the government can do is remove the extra tariffs, which both sides need to do. Then, let the companies make purchases based on their own will and market rules.”
The chamber president says that would create conditions for a “convenient” and “good” trade environment, rather than creating obligations for firms to buy a certain amount of product during a certain time. While China can step up purchases based on market conditions, $40 to $50 billion is “very high.”