In the deal what we see is a consensus to halt the idea of having so sort of trade war, which has been a constant feature in rhetoric between the two nations. The Chinese capital, Beijing has agreed to purchase an additional $200 billion with American agricultural products over the course of two years. US Secretary of State, Mike Pompeo, repeated the same pledge this week.
According to US reports, Yang Jiechi, a Chinese State Councillor, apparently met in Hawaii to discuss a number of issues between the two countries.
Many European firms had been able to make some inroads into the markets in China.
This happened during the trade war as Beijing at the time was seeking alternatives to its US suppliers.
The January deal, known as phase one, came as a blow.
US Secretary of State Mike Pompeo is displayed as Pompeo, foreground, accompanied by Sam Brownback,
According to Max Zenglein, chief economist at the Mercator Institute for China Studies in Berlin said European firms saw the US-China deal as “highly problematic”.
“China’s focus on imports from the US will negatively affect other suppliers,” he said.
However, tale a look at official Chinese figures.
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In 2018, with the trade war underway, Beijing granted approval to 46 meat companies from the European Union (EU) countries to export their products to China, more than double the figure for the US.
Because of Africa experiencing an outbreak of swine fever last year, China had to deal with a shortage of pork and other meat products.
The swine fever killed around 60 per cent of its pig herd, the number of EU meat producers granted approval to export more than doubled to 112.
EU sales of agricultural products to China in 2019 rose 38 per cent from the previous year to €15.3 billion US$17.1 billion.
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Medical workers wear protective suits at a temporary COVID-19 testing station in Xicheng district
Despite this things have started to change, during the first 10 months of 2019, Beijing granted no new approvals to American meat exporters.
Instead giving almost 350 of them the go-ahead in November and December.
There has been a further trend in 2020, with around 1,000 US companies being given the ‘go-ahead’ to sell to China.
This is quite the contrast compared to the 24 companies that could trade from the EU.
European businesses suffering due to deal.
“The phase one deal has meant far less space for European firms to get access to the Chinese market,” said an EU diplomat, who asked not to be named.
“The deal has effectively sucked most of the air from the room when it comes to agricultural deals, and left firms and governments frustrated.”
In the first three months of 2020, China bought more than US$1 billion worth of soybeans from America.
One of the world’s biggest suppliers of the crop – and US$691 million worth of US pork.
U.S. Trade Representative Robert Lighthizer appears before the Senate Finance Committee on June 17, 2020
However, those inclines to one side, it is being reported that it’s unlikely China will be able to fulfil its obligations to buy an extra US$200 billion worth of American agricultural products over the next two years.
The reason is because of the disruption caused by the Covid-19 pandemic.
The promises made by Yang in Hawaii were most likely designed to appease Donald Trump – who is hoping to win a second term as president in November – he said.
“Given the political importance of agricultural producing states for Trump, it seems highly plausible that this was an attempt by the Chinese leadership to show its willingness to uphold the agreement.”
Meanwhile, European sales of agricultural goods to China are set to take a further hit after officials in Beijing said the new outbreak of Covid-19 in the city was linked to a “European strain” of the coronavirus.