China offers to narrow its US surplus, say sources
$1 trillion in increased Chinese buying would close trade gap in six years, negotiators propose.
A Bloomberg article, republished by Treasury & Risk among others, reports China as offering the US to increase its buying, to reduce the trade imbalance to zero by 2024.
According to the article, the information comes from ”officials familiar with the negotiations” but who wish not to be named as the discussions are not public.
Just another trillion dollars
Ramping up Chinese purchases from the US by $1 000 billion over the six-year period should close China’s trade surplus in the relation. For 2018 it was noted at $323 billion.
Bloomberg writes that the offer, expressed in Beijing talks in the first half of January, was met with skepticism by US negotiators. These still asked the Chinese for even more, demanding that the imbalance be cleared in two years.
Easer said?
Economists have argued that it would be hard to close the gap, which they say builds largely on US demand for Chinese products.
According to Bloomberg, the dollar rose as the news came out.