The two-day summit between President Donald Trump and Chinese leader Xi Jinping ended with three major wins for the Trump administration, the Financial Times reported.
Chinese officials said that Xi offered significant concessions on beef and grain imports as well as investing in China’s financial sector. The concessions would avert a trade war between the two countries, keeping prices down for American consumers.
At the summit, held last week at Trump’s Mar-a-Lago resort in Florida, Xi said he would lift the 13-year ban on American beef imports. Under the agreement, the Chinese would likewise buy more American agricultural products.
Xi also seems to be ready to let American firms invest more readily in Chinese financial firms, permitting larger stakes to be held. This would be part of a plan to avoid higher tariffs or trade barriers that could lead to a trade war — three wins for the Trump administration.
The three concessions were part of a wider 100-day plan that will be negotiated between the two forces, CNBC reported.
“This is the ‘good’ way to close the bilateral trade gap,” Carl Weinberg, chief economist at High Frequency Economics, wrote, according to the network. “US consumers’ access to less expensive imported goods will be unaffected, but incremental jobs will be created by incremental production.”
But Commerce Secretary Wilbur Ross said relations could sour if the 100-day plan doesn’t materialize from the discussions.
“If we don’t get some tangible results within the first 100 days, I think we’ll have to examine whether it’s worthwhile continuing them,” Ross told Fox News on Sunday morning.
Both leaders were optimistic after the meeting, which was described as “cordial” by CNBC.
“We have a thousand reasons to get China-U.S. relations right, and not one reason to spoil the China-US relationship,” Chinese state media reported Xi as saying.
President Trump, for his part, published a Twitter post stating “goodwill and friendship were formed, but only time will tell on trade.”
The summit meeting agenda was crowded, of course, and there are still issues to be sorted out between China and the United States. For example, still a $300 billion trade deficit, which President Trump has attributed to unfair trade practices, including currency manipulation.
In any case, if things continue this way, there’s every reason to think that the relationship will work out.