The United States and China have reached a new agreement that is poised to bring significant changes to their trade relationship. The new agreement, which has been hailed as a major victory for the Trump administration, will see China increase its purchase of US goods and services, particularly in the areas of energy, agriculture, and manufacturing.
Under the new agreement, China will purchase an additional $200 billion worth of US goods and services over the next two years. This is a significant increase from the previous trade agreement between the two countries, which saw China commit to purchasing $40 billion in US goods and services.
The increased purchase of US goods and services by China will have a positive impact on the US economy, particularly in the areas of agriculture and manufacturing. US farmers, who have been hit hard by the ongoing trade war with China, will benefit from increased demand for their products. Similarly, US manufacturers will see increased demand for their products, which could lead to an increase in hiring and expansion.
The energy sector is also expected to benefit from this new agreement. China has committed to purchasing an additional $50 billion in energy products, including liquefied natural gas (LNG) and crude oil. This increased demand for US energy products could provide a boost to the US energy industry, which has been struggling in recent years due to low oil prices.
The new agreement also includes provisions related to intellectual property and technology transfer, areas that have been contentious in the past. China has committed to strengthening its intellectual property protections and improving its technology transfer policies, which should help to level the playing field for US companies operating in China.
Overall, the new agreement with China is a positive development for the US economy and for US businesses. While there are still issues to be addressed in the US-China trade relationship, this agreement provides a foundation for further progress. As the two largest economies in the world, the US and China have a critical role to play in shaping the global economy. This new agreement is a step in the right direction.