Details of the first phase of the new US-China trade deal have been released.
As a part of the new deal, China has agreed to a commitment to purchase $80 billion more in US manufactured goods over the next two years.
The first phase of the trade truce is expected to benefit several big manufacturers. Among the biggest beneficiaries is Boeing, which is still struggling to recover from fallout of the two 737 Max disasters. So far, the first phase will see China buy $80 billion more in manufactured goods and $32 billion more in agricultural goods over the next two years. The US already exported about $24 billion in agricultural goods in 2017, meaning the trade truce will see the total value of US agricultural exports reach about $40 billion, the goal announced by US President Donald Trump.
Representatives from both countries are expected to sign the “Phase One” deal on Wednesday. Trump will be signing for the US, while Chinese Vice Premier Liu He will be signing for China. The deal is set to represent a massive increase in the total Chinese imports of agricultural and manufactured US goods. Some analysts are skeptical that China is even able to keep up with such a commitment. In either case, the news will likely be welcomed by US farmers, who work in the sector hardest hit by Chinese retaliatory tariffs during the trade war.
More details will likely be released. For now, we know that the $80 billion commitment for manufactured goods will include large purchases of US cars, car parts, semiconductors, aircraft, and agricultural machinery by China.