US willing to show China patience on purchases if trade gap doesn't grow

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WASHINGTON - The US is willing to show China some flexibility on its pledges to boost American imports as long as Beijing ensures exports don't surge when production returns to full strength and widen the trade imbalance between the world's two largest economies, people familiar with the discussions said.. Read more at straitstimes.com.

WASHINGTON - The US is willing to show China some flexibility on its pledges to boost American imports as long as Beijing ensures exports don't surge when production returns to full strength and widen the trade imbalance between the world's two largest economies, people familiar with the discussions said.

A sharp rebound in shipments of Chinese products without a corresponding upswing in imports would swell the already gaping US trade deficit with China - the metric President Donald Trump has frequently based his success on. One of the people said another condition is that the total of the purchase targets can't change and that China will fulfil the commitments eventually.

The US-China trade balance is Trump's go-to gauge to see who's winning the global battle for economic supremacy. So there would likely be little patience in the US administration - particularly leading up to Trump's re-election bid in November - to let China delay purchases while exports accelerate.

 

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