Trade Deal Will Have Rules China Must Obey
President Donald Trump said US-China relations has taken a big step forward at the weekend after he and Chinese President Xi Jinping agreed to hold off on new tariffs, and urged Beijing to finalize a trade deal with Washington within the next 90 days.
The trade deal with China will include specific timelines and specifications, and China will face penalties if it does not comply, Treasury Secretary Steven Mnuchin said Tuesday.
“There’s 142 structural items we’ve discussed in great detail,” Secretary Mnuchin said on TV. “This is not about making commitments the things that you know are pie in the sky over the next 2 or 3 years.”
Instead, he added, “our expectation is there will specific deliverable’s, there will be specific timelines and that we have an agreement that there will be penalties if China does not meet those timelines and those commitments.”
The weekend meetings between President Donald Trump and Chinese President Xi Jinping marked the 1st time there has been a direct agreement, and President Xi “made some very strong commitments on changing structural and non structural issues,” said Secretary Mnuchin. “If we can get this negotiated and get a real agreement, I think this is the single biggest opportunity for US business and US workers.”
But, there must also be specific structural changes, said Secretary Mnuchin.
“This is not just about creating purchase orders,” he said. “There are also specific commitments in the near term on agricultural, industrial products, autos. China has come back with specific targets that they think they can meet and I think those are very big commitments.”
China has also put on the table additional purchases of $1.2-T, said Secretary Mnuchin, and “if that is real, that will close the trade deficit and it will be the structural changes that lead to US companies to compete fairly in what’s a growing China middle class.”