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Is there an offer for trade relief or not?

Source: Wikimedia Commons

There have been reports circulating about a possible $200 billion-dollar trade deal offered by the Chinese to the United States. These reports come as a Chinese delegation, led by Vice Premiere Liu, was in Washington to try and find a settlement to an impending trade dispute between the world’s top two economies.

However, a Chinese foreign ministry spokesman says they aren’t aware of a deal. What they are aware of is talks are on-going and seem to be constructive.

A $200 billion-dollar trade deficit reduction with China would be a huge feather in the Trump administration’s cap. The trade gap right now has the United States facing a $375 billion-dollar deficit to China. However, it is hard to believe it would be unilateral concessions. Chinese news agencies have assured their citizens concessions would not be solely on their side.

One thing that we can be certain of is the Chinese government is ending its anti-dumping and anti-subsidy investigations into U.S. Sorghum. Bloomberg reports China made the announcement Friday morning saying that it would be in the best, “public interest”, to do so and comes just days after the restarting of a review of Qualcomm Inc’s application to acquire NXP Semiconductors NV.

President Trump remains skeptical that an agreement can be reached to avoid a trade war. Trump says, “China has become very spoiled”. However, some economists are hopeful the offer is sincere, and a positive outcome can be reached. No matter how difficult the details are to contemplate.