The whole world is considering the recently concluded trade talk between the USA and China a success. In phase one trade deal, Washington agreed to push the scheduled tariffs-increase on 650 billion worth Chinese goods. In return, China agreed to buy agricultural products worth 40-50 billion USD from the United States.
The deal is not official yet, and it will take around five weeks to complete all official formalities, said Trump. But it’s been a week since phase one negotiation, but China yet to confirm its stand, which raises a concern about the development.
The Chinese Commerce ministry did not confirm the figure as well. All purchases will be according to the need of the Chinese market, the ministry explained. As a result, the uncertainty over phase one deal continues to rise.
If the Chinese do not buy the disclosed amount of agricultural products from Washington, then it will consider as a failure of Trump. As the next year is the presidential election year, any failure can potentially hurt Trump’s election campaign.
If China refused to buy USA-based agricultural products, industry experts predict Washington to take a firm stand like never before.
Now the whole world is awaiting Chinese response on the deal.