China to Take US Beef by July 16
- Author: Neal Todd May 16, 2017,
May 16, 2017, 2:22
The U.S. government has reached agreement with China to ship beef and promote market access for other American products such as natural gas, and financial services.
President Trump tweeted the news this morning, adding, "That's real news".
Under the agreement, the United States is inviting Chinese companies to import USA -produced liquefied natural gas.
In an initial trade deal announced by both sides in their capitals, Beijing will allow United States beef, banned since 2003, into China by July, give American financial services firms access to the Chinese market, and may import American liquefied natural gas.
American firms such as Visa and MasterCard will be allowed to offer card payment services in China. "China economic engagement and cooperation".
Jordan Dux, Nebraska Farm Bureau's director of National Affairs, saw the move as a sign Trump is paying attention to agriculture's calls for expanding world markets and a positive turnabout in what has been a rocky relationship between the president and agriculture when it comes to issues of trade. While the Trump administration has touted a surge in USA manufacturing, this agreement does little to help that goal.
China is the third largest LNG importer, behind Japan and South Korea, bringing in 26.06 million tonnes in 2016. However, the quick progress signals a more pragmatic approach by the administration to dealing with trade tensions between the two countries, after months of saber-rattling and talk of a trade war.
But while the world's two biggest economies agreed to take a number of steps by July 16, it was not clear how much these new deals would increase trade in the near term.
Ker Gibbs the American Chamber of Commerce in Shanghai chairman said the new measures were a good start but did not represent a breakthrough.
USA credit rating services, electronic payment services and bond underwriting businesses are now allowed into the Chinese market. "This should have been done years ago when it would have made a difference".
USA beef producers and financial firms will get more access to Chinese markets in exchange for chicken imports and a potential opening for Chinese banks.
"China is in the midst of a devastating and deadly bird flu outbreak that has claimed the lives of more than 200 people and required poultry farmers to kill more than 400,000 chickens".
America would also meanwhile allow nationwide companies to export natural gas in the liquefied state to China. The ban was imposed in 2003 due to a case of bovine spongiform encephalopathy (BSE), or mad cow disease, in Washington state.
"Clearly China, whose banks are among the largest in the whole world, wants access to the U.S. banking market", he said. -China Comprehensive Economic Dialogue.
MasterCard welcomed the announcement, saying it looked forward "to having full and prompt market access in China".
Perdue says USDA is working to meeting the strict safety standards China has set to resume US beef exports after 13 years.
A Chevron driller wearing a hard hat.
Domestically produced Chinese beef is on sale at a supermarket in Beijing, Friday, May 12, 2017.
The agreement also calls for China to issue bond underwriting and settlement licenses to two qualified US financial institutions by July 16.
Most of China's demand needs are already met by long-term supply agreements, although new buyers are expected to emerge in the coming years as the country cuts back use of coal in power generation and manufacturing. "I guess that helps with the administration's focus on the deficit, but it would be good to see some action on Made in China 2025 and the other very aggressive industrial policies". "We are going to start making money on cattle again".