BİZE ULAŞIN
Istanbul, May 21 (DHA) - China has pledged to buy more U.S. goods to reduce America’s huge trade deficit and help avoid escalating a trade war between the world’s two biggest economies, with energy and commodities high on Washington’s list of products for sale.
Total U.S. oil and gas exports to China in 2017 were worth $4.3 billion, based on average prices, a far cry from a deficit reduction target of $200 billion.
But U.S. exports are rising, and China has spent $2 billion on U.S. oil in the first quarter of 2018 alone.
Increased purchases of U.S. oil will help China replace Iranian supplies, which are expected to fall as the United States re-imposes sanctions on Tehran.
The U.S. trade war with China is “on hold” after the governments agreed to drop tariff threats and work on a wider agreement, U.S. Treasury Secretary Steven Mnuchin said on Sunday.
Morgan Stanley estimates it could take up to three years to increase Chinese purchases of U.S. goods by $60 billion to $90 billion, with a rise in agricultural imports in the near term followed by energy.
Washington also wants the United States to export more liquefied natural gas (LNG) to China.
While LNG shipments have increased, there are only two U.S. export facilities, both of which have largely contracted out their supplies. There are also restraints in China due to pipeline and terminal capacities.
U.S. LNG exports to China could eventually surge if Chinese companies become partners in many of the U.S. export projects that still seek financing.
