China allows access to US beef, gas and financial services

Deal highlights warm ties between both countries after intense political drama

BEIJING: Beijing and Washington announced on Friday an agreement giving United States (US) beef, natural gas and certain financial services access to China’s massive market in a deal highlighting the warm ties nurtured by both countries’ presidents.

The deal was unveiled a month after Chinese President Xi Jinping and US counterpart Donald Trump launched a 100-day action plan on economic cooperation during their meeting at the Mar-a-Lago resort in Florida.

Trump’s Treasury Secretary Steven Mnuchin hailed the agreement with China as he arrived for a meeting of G7 finance ministers in Bari, Italy.

“We are excited about US trade policies and I think you probably saw we made an announcement of a 100-day economic plan with the Chinese, so I think we’re very happy with how we’re proceeding with the Chinese,” said Mnuchin.

Relations between the two governments have been warmer than expected after Trump lashed out at Beijing throughout the US presidential campaign.

“This was pretty much a herculean accomplishment to get this done,” US Commerce Secretary Wilbur Ross told reporters at the White House, according to Bloomberg News.

“This is more than has been done in the whole history of US-China relations on trade,” he added. The US commerce chief said the deal will help reduce the US trade deficit with China, which reached nearly $350 billion last year.

In Beijing, foreign ministry spokesperson Geng Shuang said the two countries “enjoy very close economic cooperation”.

“The nature of this relationship is mutually beneficial. The two sides decided to press ahead with this economic plan and the fact that much progress has been made in a short amount of time shows... we can establish more cooperation for the joint benefit of the people,” he said.

During last year’s election, Trump had threatened to impose trade tariffs and label Beijing a currency manipulator, neither of which he has done. But his tone changed after he took office and met with Xi in April, calling the Chinese leader a “good man” who was trying to help Trump rein in North Korea.

Under the agreement announced by both nations, China will authorise US beef imports by July 16, while the US will lift barriers on Chinese cooked poultry exports “as soon as possible”.

China banned US beef following a case of mad cow disease in the US in 2003. Beijing had announced an end to a 14-year embargo on US beef last year, but the decision has yet to be implemented.

Meanwhile, regaining access to China, the world’s most populous country with 1.4 billion people, has been a key goal of US cattle farmers. The deal will also allow Chinese companies to buy liquefied natural gas (LNG) from the US.

“This will let China diversify, somewhat, their sources of supply and will provide a huge export market for US LNG producers,” said Ross.

Published in The Express Tribune, May 13^th, 2017.

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