China is considering spending an extra $30 billion per year on US agricultural products.
The potential purchase, which was reported by Bloomberg, may come as part of a new US-China trade deal.
Top officials in the US and China have been working for months to find an end to the current trade war. The world’s two largest economies have been engaged in tit-for-tat tariffs for some time now, so the news will likely be greeted with a mix of joy and skepticism. The new “Memoranda of Understanding” is meant to address the most pressing issues in Sino-US relations, and hopefully rectify some of them.
The Memoranda of Understanding is expected to bring about cuts in tariffs. Analysts believe that if an agreement can be reached and the trade war ends, the markets will recover very quickly. The main concerns going forward surround how far the agreement will actually go in restoring trade relations. If the agreement is substantive enough that it can balance the sheets on both sides, there is a strong chance of trade relations being restored while recent protectionist measures can be eased by both parties.