More doubt and questions surface on China’s potential buys of $40 billion to $50 billion in U.S. farm products, with questions on how much, the time frame for purchases, and what the U.S. might have to give in return for China committing to purchase a quantity of US farm products.
Chinese negotiators continue to say purchases must be based on actual demand and at fair-market prices. It will take up to five weeks to see the official language of any conclusion to Phase One agreements, as both sides meet and work on language to be hopefully signed by President Donald Trump and Chinese President Xi Jinping on the sidelines of the November 16-17 APEC meeting in Chile.
Sen. Chuck Grassley, R-Iowa, said Tuesday he wanted to get more details on what the agreement entails.
Chinese Foreign Ministry spokesman Geng Shuang told reporters Tuesday that Beijing would step up purchases of US agricultural products but provide details. He said that China’s understanding of the latest trade talks was “consistent” with what the U.S. described.
Some indicate that China could attach conditions to a written pact that would allow it to buy less farm products than the US expects, such as by stretching out the time frame for purchases. China could also insist on language saying that prices for US goods are reasonable and that Chinese purchases comply with the rules of the World Trade Organization, which bans managed trade.
This is why the official Phase One language regarding farm product purchases will be key.
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