- After the U.S. and China announced the “phase-one” trade agreement, a critical point remains in question: agricultural purchases.
- U.S. Trade Representative Robert Lighthizer says China would buy at least $16 billion more agricultural goods in each of the next two years, Reuters reported.
- “That scale of purchases seems implausible and Chinese officials were reluctant to mention any specific target during their press conference,” Nomura analysts say in a note.
After the U.S. and China announced the “phase-one” trade agreement, a critical point remains in question: agricultural purchases.
Bilateral trade is a significant part of the dispute between the world’s two largest economies, especially after both sides decided to break the negotiations into phases, rather than tackling a slew of American concerns, which range from the trade deficit in goods to state control in the economy.
On Friday, both countries held separate press conferences to announce that they reached the phase-one agreement.