Trump to Sign China Trade Deal Today

The trade deal contains a variety of wins for American industry, including opening up markets for financial services, pharmaceuticals, beef and poultry. China has committed to increasing its purchases of food, energy, manufactured goods and services by $200 billion over two years, though many analysts say that figure appears unrealistic given what the United States currently produces.

China has also committed to not forcing American companies to hand over their technology as a condition of doing business there, under penalty of further tariffs. Beijing has also promised to refrain from devaluing its currency, the renminbi, to gain an advantage in export markets, among other pledges.

Those terms appear likely to benefit American companies and increase exports in coming months, potentially narrowing the trade deficit with China, which has become a focal point for Mr. Trump.

The president seized on many of China’s concessions during the signing ceremony, singling out audience members who will benefit from the trade deal. He called out a litany of Wall Street executives, many of whom have been pressing for greater access to China’s financial services market, including Stephen A. Schwarzman, the chief executive of the private equity firm Blackstone Group; Kenneth C. Griffin, the billionaire founder of the hedge fund Citadel; and the heads of Citibank, Visa, Fidelity Investments and American International Group.

Referring to the energy purchases in the agreement, Mr. Trump called on Senator Joni Ernst, the Iowa Republican, saying “you got ethanol so you can’t be complaining.”

Article source: https://www.nytimes.com/2020/01/15/business/economy/trump-signs-china-trade-deal.html?emc=rss&partner=rss