US, China Cooperation to Extend Trade
The United States and China will expand trade in beef and chicken and increase access for financial firms, as part of a plan to reduce the massive US trade deficit with Beijing, US Commerce Secretary Wilbur Ross said Thursday.
The deals are the 1st tangible results of trade talks that began last month after US President Donald Trump and Chinese President Xi Jinping met in Florida to discuss cooperation between the world’s 2 largest economies.
Beijing will also allow US-owned card payment services to begin the licensing process in a sector where China’s UnionPay system has had a near monopoly.
Foreign-owned firms in China will also be able to provide credit rating services.
The talks with China are latest in a series of actions since President Trump took office on 20 January aimed at remaking US international trade relations.
Ross said there should be an impact on China’s trade surplus with the United States by the end of the year. The United States also signaled that it was eager to export more LNG (liquefied natural gas), saying China could negotiate any type of contract, including long-term contracts, with US suppliers.
It is unclear exactly how much these new deals will increase trade between the 2 countries.
US credit card operators Visa Inc (NYSE:V) and MasterCard Inc (NYSE:MA) have yet to be independently licensed to clear transactions in China, despite a 2012 WTO ruling mandating that Beijing open the sector.
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