China offers trade deal to President Trump in bid to dodge US tariffs
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President Donald Trump’s buddy, China’s President Xi Jinping, is hustling to fix things with America before the highly-expected trade war kicks off on Monday. He’s calling for a truce in a fight he never started, a fight he desperately tried to stop. According to a report from Wall Street Journal, Beijing is preparing to offer President Trump a trade deal designed to delay or eliminate the 10% tariffs he announced against China on Saturday, as well as technology restrictions. Reportedly, the proposal focuses on reviving the 2020 Phase One trade deal, which fell apart before it could deliver. But this time, China’s plan comes with a few new offers designed to grab Trump’s attention. Phase One 2.0: China’s $200 billion pledge revived Back in 2020, Beijing promised to increase purchases of American goods and services by $200 billion over two years. The results were a disaster. China didn’t even hit 60% of the target, according to estimates by the Peterson Institute for International Economics. But the Journal’s report claims that this time will be different—at least on paper. China is willing to refocus its purchases on products it actually needs, like tech hardware, chips, semiconductors, and US energy products. That’s a huge change from the original agreement, which many analysts described as over-ambitious and unrealistic. China is also throwing in new promises to invest in US industries, particularly electric car battery production. Beijing wants this to appear like a win-win for both countries. Sources in Washington reportedly said the investment strategy could be designed to ease some concerns over America’s growing dependence on Chinese manufacturing. In a bid to keep currency issues off the table, China is also pledging not to devalue the yuan to make its exports more competitive. Chinese officials also reportedly said they would commit to reducing…
Filed under: News - @ February 3, 2025 10:23 am