The trade truce between President Donald Trump and China's Xi Jinping will potentially pause Jan. 1-planned tariffs, with large China purchases of goods and services serving as "down payment," according to The Wall Street Journal.
China has pledged to announce purchases of soybeans and natural gas in the coming weeks, according to Journal sources, to put off President Trump's 25 percent 2019 tariffs on $200 billion of Chinese goods for 90 days.
China will also consider reducing tariffs on American automobile imports, per the report.
Beyond that, the true negotiations will commence, officials told the Journal, among them:
- U.S. access to Chinese markets.
- Intellectual property theft.
- Force technology transfer.
Talks had hit a snag with the arrest in Canada of Meng Wangzhou – the daughter of Huawei Technologies Co.'s founder – but Xi has directed a follow-through on the Dec. 1 agreement with President Trump, according to the report.
The total U.S. trade deficit with China was $336 billion in 2017, according to the Journal, but Treasury Secretary Steven Mnuchin said China would make "additional purchases of $1.2 trillion dollars" and "if that's real, that will close the trade deficit."
But that represents "such an extraordinary rate that while it's not impossible, it's not likely," Obama administration treasury aide David Dollar told the Journal.
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