The US and China have finally come to a trade agreement and it’s not what many expected. President Trump had promised in his election campaign to aggressively attack China in trade deals, labeling them a “currency manipulator”. But the new trade deal is actually softer than we thought it would be and many are saying that Trump isn’t sticking to his promises but I don’t think that’s the case.
In the new trade agreement, Chinese Banks will be able to operate in America and Chinese Cooked Chicken will be allowed in the US Market. And China’s part of the deal will be to allow US beef imports and accept US shipments of liquefied natural gas.
Sounds like a really good agreement if you ask me — but why?
Now, there are a million reasons why Trump decided not to get too harsh with China. It could be a part of his plan to take down North Korea (as Trump promised China a better trade deal if they dealt with Kim Jong Un)
It could also be a way to make trade between the two countries more even and fair as opposed to one-sided.
“Clearly China, whose banks are among the largest in the whole world, wants access to the US banking market,” US Commerce Secretary Wilbur Ross said to CNBC. “As long as they can comply with the normal rules, they will get access.”
What do you folks think about the new trade deal? Let me know on Facebook or in the comments section below.