Shift in US-China trade balance hinges on demand: Experts

China's needs, US product prices to steer any larger shifts in purchasing pattern, they say

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The so-called "phase one" trade deal between Washington and Beijing has been "absolutely completed", White House economic advisor Larry Kudlow said on Monday, adding that US exports to China will double under the agreement.
A pork vendor waiting for customers at a market in Beijing last month. Pork prices more than doubled this year after the industry was hit by African swine fever, said China's National Bureau of Statistics yesterday. PHOTO: REUTERS
A pork vendor waiting for customers at a market in Beijing last month. Pork prices more than doubled this year after the industry was hit by African swine fever, said China's National Bureau of Statistics yesterday. PHOTO: REUTERS
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The most immediate benefit for China of the "phase one" trade deal - once it is signed - will likely be an increase in its purchase of United States farm products, such as pork, poultry and soya beans, say experts.

But larger shifts in the bilateral trade balance will be demand-driven and depend on the market competitiveness of US products, they stress, after top officials signalled over the weekend that Beijing would resist being held to fixed purchase commitments.

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A version of this article appeared in the print edition of The Straits Times on December 17, 2019, with the headline Shift in US-China trade balance hinges on demand: Experts. Subscribe