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China may buy up to USD 200 billion worth of US goods to reduce massive trade deficit: report

Press Trust of India  |  Washington 

may buy up to USD 200 billion worth of American goods under intense pressure from the to reduce its massive trade deficit with the US, a media report said today, amid a round of high-level trade talks between the world's two largest economies.

The US has threatened to impose 25 per cent tariffs on up to USD 150 billion in Chinese goods while has targeted USD 50 billion in American exports.

The two countries have not yet implemented their tariff increases to reach a negotiated settlement.

A high-level Chinese delegation led by is currently in for trade negotiations with the US. The two-day talks would continue until Friday.

Liu called on US at the yesterday.

"Chinese negotiators are preparing to offer the administration a deal to buy up to USD 200 billion worth of American goods, which would allow Trump to claim victory in his campaign to reduce the trade deficit with and rebalance America's trade relationship with its biggest economic rival, according to people briefed on the deliberations," reported.

The Chinese promises would be largely illusory, economists cautioned, given the structural hurdles in China to buying more American exports and the sheer amount of goods the would have to produce to meet Beijing's demand, the daily reported.

But in Beijing, said the "rumours are false" and the "consultations are indeed still in progress and the talks are constructive."

Lu also said the decision to drop the sorghum probe should not be "over-interpreted."

In a readout of the latest round of trade negotiations, the said the US officials conveyed the President's clear goal for a fair-trading relationship with China.

The US delegation is led by It also includes and US Trade Representatives

"The officials and the Chinese delegation also participated in a meeting with at the The two sides agreed to continue the discussions on Friday," the White House said.

According to The New York Times, under the deal being discussed, China would pledge to buy substantially more American goods, including like soybeans, as well as and

"That could theoretically reduce its trade surplus with the - which hit USD 372.5 billion last year - by up to USD 200 billion, though the real number would most likely be lower," it said.

In return, China is asking the US to set aside tariffs and investment restrictions it has threatened against Chinese companies, the report said.

Meanwhile, the US Congress is looking set to advance a bill that would give the US greater power to block deals between American and Chinese companies that could risk national security, said.

The US, the world's largest economy, has a trade deficit of almost USD 500 billion with the world's second largest economy China.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 18 2018. 20:10 IST