Some details are starting to emerge on how China would increase imports from the U.S. by as much as $200 billion over the next two years.
That would meet its commitments under the phase one trade deal announced last week. Bloomberg says the still-unsigned deal includes Chinese purchase levels of $40 to $50 billion in U.S. ag commodities, a level which many experts think isn’t reachable.
To help get closer to that figure, sources close to the matter tell Bloomberg that Beijing plans to restart purchases of ethanol by lifting or waiving trade war tariffs on the fuel.
China is also considering taking U.S. trade from Hong Kong into its mainland ports, which would enable about $10 billion a year in U.S. goods to go directly to the mainland, which would boost the tally.
The U.S. doesn’t count the shipments that go through Hong Kong as a part of its trade with China. China will also grant more regular waivers on retaliatory tariffs to local buyers of U.S. farm products like soybeans and pork.
Back in November, China had lifted its ban on U.S. poultry shipments as a part of trade negotiations. U.S. officials estimate poultry exports will top $1 billion a year.