Washington is pressuring Beijing by lobbying long-term contracts for the supply of energy resources and agricultural products to China in order to reduce the multi-billion-dollar trade deficit between the countries, according to the Financial Times.
Washington also intends to seek the abolition of quotas on US supplies to China. If the parties agree to remove trade barriers, then the expansion of energy supplies, according to the US Treasury, will bring the US an additional 50-60 billion dollars a year.
The multiyear contracts to buy US agricultural and energy imports are a part of a broader trade deal aimed at reducing the $337 billion bilateral trade deficit with China.
By the end of May, US Secretary of Commerce Wilbur Ross is set to meet with Chinese authorities, where the parties will discuss Washington’s proposal.
Ross’ trip comes after Donald Trump announced a deal to allow Chinese telecoms firm ZTE to resume operations in the US after paying a $1.3 billion fine and taking other measures.
Administration officials also stated that they are pushing for other long-term changes in China, “such as reform of its intellectual property rules and alterations to Xi Jinping’s Made in China 2025 policy to lead the world in 10 key sectors, the original targets of US tariff threats earlier this year,” the FT reported.
Earlier, Beijing and Washington agreed not to unleash a new trade war because of increased US customs duties on Chinese goods and tit-for-tat measures by China.