Published: Fri, May 18, 2018
Global News | By Blake Casey

China Proposes $200 Billion in Trade Rebate

China Proposes $200 Billion in Trade Rebate

China denied on Friday that it had offered a package to slash the USA trade deficit by up to $200 billion, hours after it dropped an anti-dumping probe into US sorghum imports in a conciliatory gesture as top officials meet in Washington.

China started investigating USA sorghum in February after finding that large volumes and falling prices hurt Chinese producers. Authorities imposed preliminary anti-dumping tariffs of 178.6 p.c final month on the crop, which is used primarily for animal feed and liquor.

Earlier on Friday, China announced that it was ending its sorghum investigation, which had effectively halted a trade worth roughly $1.1 billion previous year.

In the course of its investigation, the ministry concluded that, "Anti-dumping and countervailing measures against imported sorghum originating in the United States would affect the cost of living of a majority of consumers and would not be in the public interest", according to a notice posted on its website.

The announcement came during a visit by Vice Premier Liu He to Washington to discuss ways to address the trade imbalance between the world's 2 biggest economies.

President Donald Trump's administration has proposed tariffs on as much as $150 billion in Chinese language merchandise to punish Beijing for requiring USA firms to show over expertise in change for entry to China's market.

"That could theoretically reduce its trade surplus with the United States - which hit Dollars 372.5 billion previous year - by up to Dollars 200 billion, though the real number would most likely be lower", it said. Treasury Secretary Steven Mnuchin is main the talks with Chinese language officers.

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That suggests he will avoid an uncomfortable public appearance and instead meet only with the legislature's top brass behind closed doors.


Reciprocally, China is requesting the U.S. to reserve tariffs and investment curtailment it has intimidated against Chinese companies.

"The United States officials conveyed the President's clear goal for a fair trading relationship with China", the White House said. Trump instructed reporters that he had doubts concerning the potential for an settlement.

"Now they are showing goodwill by halting its anti-dumping investigation into sorghum imports, but it is a cheap way of showing goodwill as the USA doesn't have much sorghum left to export".

China may buy up to United States dollars 200 billion worth of American goods under intense pressure from the Trump administration to reduce its massive trade deficit with the USA, a media report said today, amid a round of high-level trade talks between the world's two largest economies. "The next USA sorghum crop will be harvested in August", he told the news agency Reuters.

Some China trade watchers expressed skepticism that a US$200 billion reduction in the trade gap could be achieved quickly and said the offer may include repackaged commitments previously announced by China.

Trump said he agreed to Xi's request to look into the matter and that ZTE bought a lot of components from USA companies. Beijing has threatened equal retaliation, including tariffs on some of its largest US imports, including aircraft, soybeans and autos.

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