The President of the US Donald Trump is used to using harsh words and taking action on them, so when he said that a trade war with China the incumbent world power, that send chills to many people and systems through out the globe.
The last two days there have been meetings between high level officials from both countries in Washington in order prevent an economic conflict. The meetings come after Trump sanction the Chinese giant ZTE for supplying Iran with electronics.
It appears the meetings have bore fruits with Treasury Secretary Steven Mnuchin saying the trade war is put “on hold” and the meetings produced agreements on increased Chinese purchases on American products and easier access of US companies to operate in China.
Donald Trump had threatened with tariffs on 150$ billion in Chinese imports, because the Americans would have to give up technology secrets in order to do business with China unless a deal could be reached, as it happened today.
Now for the continuation of this saga Commerce Secretary Wilbur Ross will head to Beijing in order to iron out the details.
The meetings that took place in Washington were with US Treasury Secretary Steven Munchin and a Chinese team headed by Vice Premier Liu He.
The Secretary said “We expect to see a very big increase, 35% to 45% increases in agriculture this year alone” and “In energy, doubling the energy purchases. I think you could see $50 billion to $60 billion a years of energy purchases over the next three to five years.”
There have also been suggestions the China might buy large quantities of LNG but that’s questionable.
We must also point out that the comments of the Treasury Secretary come one day after the joint statement made the US and China, pointing that China has agreed to buy “at least $200 billion” more from the United States each year.