• İstanbul 14 °C
  • Ankara 14 °C

China to buy US energy goods worth $52B over 2 years

China to buy US energy goods worth $52B over 2 years
Out of $200B purchase commitment, 26.2% is energy-related, second-largest category in phase-one deal

By Ovunc Kutlu

ANKARA (AA) - China committed to buy around $52 billion worth of energy goods from the U.S. in 2020 and 2021 amid the phase-one trade deal signed by the countries.

After 21 months of imposing reciprocal tariffs, the world's two biggest economies finally reached a trade agreement and signed a phase-one deal on Wednesday in Washington, D.C.

The deal will see Beijing buy a total of $200 billion worth of goods and services from the U.S. this year and the next. This amount will come on top of purchases made in 2017 before the trade war started when China that year imported around $185 billion worth of U.S. goods and services.

Out of the additional $200 billion purchase commitment, $52.4 billion, or 26.2%, is energy-related, which makes it the category with the second-largest export volume in the phase-one deal.

Under the deal, China will buy $18.5 billion worth of energy products from the U.S. in 2020, and another $33.9 billion in 2021.

Liquefied natural gas (LNG), crude oil, refined products and coal are some of the major items within the energy category that China has committed to buy.

After the shale revolution in 2008, the U.S. increased its crude oil and natural gas output tremendously to become the world's biggest crude oil producer in November 2018, surpassing Saudi Arabia and Russia.

Exporting oil and LNG to overseas has become a major focal point for U.S. President Donald Trump in his attempt to boost his country's export volumes and narrow the trade deficit.

- Services come third, agriculture fourth

Under the phase-one deal, the product category with the largest exports volume that China vowed to buy is manufactured goods.

Beijing will buy $32.9 billion worth of U.S.-manufactured goods in 2020, and another $44.8 billion in 2021, bringing the total to $77.7 billion in two years.

Some of the manufactured goods are industrial machinery, electrical equipment and machinery, pharmaceutical products, and aircraft, which include both orders and deliveries, vehicles, optical and medical instruments, and iron and steel.

Services rank the third-largest in exports volume as Beijing commits to buy $12.8 billion this year and $25.1 billion next year, bringing the total to $37.9 billion.

Some of the items in the services category are business travel and tourism, financial services and insurance, and cloud technology.

The fourth-largest category is agriculture, in which China will buy $12.5 billion worth of U.S. goods in 2020, and another $19.5 billion in 2021, making the total $32 billion over two years.

Some of the items in the agricultural goods sector include oilseeds, meat, cereals, cotton, other agricultural commodities, and seafood.

- US exports to China to exceed $300B

If the phase-one deal is fully implemented, and the 2017 base year trade volume is taken into account, the U.S.' exports to China will increase to $261.7 billion this year, and reach $308.3 billion next year.

In return, the U.S. agreed to lower the rate of tariffs on $120 billion worth of Chinese imports to 7.5% from 15%.

Over the last 21 months, the U.S. imposed tariffs on $550 billion worth of Chinese imports, while China reciprocated by implementing tariffs on $185 billion worth of imports from the U.S.

Here is the volume of goods and services China will purchase for 2020 and 2021:

Export Product Category
(billion dollars)

In addition to $185B worth of goods and services U.S. will export to China

2020

2021

Total of 2020 and 2021

Manufactured goods

32.9

44.8

77.7

Energy

18.5

33.9

52.4

Services

12.8

25.1

37.9

Agriculture

12.5

19.5

32

TOTAL

76.7

123.3

200

On top of 2017 export volume

261.7

308.3


source: News Feed
This news is a total 19 time has been read
UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
This news yet comment has been added .
Other News
  • Turkish 2019 GDP growth rate of 0.6% expected: Survey27 February 2020 Thursday 12:23
  • Oil prices hit 14-month low with coronavirus fears27 February 2020 Thursday 12:23
  • Turkey: Economic confidence up in February27 February 2020 Thursday 11:13
  • Turkish stocks down at Thursday's open27 February 2020 Thursday 09:58
  • US sanctions head of Iraq's Kataib Hezbollah27 February 2020 Thursday 00:08
  • Turkey's Borsa Istanbul up at midweek close26 February 2020 Wednesday 18:13
  • UPDATE - Turkey takes all precautions against coronavirus26 February 2020 Wednesday 18:03
  • Turkey takes all precautions against coronavirus26 February 2020 Wednesday 14:18
  • Italian Iveco buses to be manufactured in Turkey26 February 2020 Wednesday 12:53
  • Oil prices remain low with coronavirus spread26 February 2020 Wednesday 11:08
  • All Rights Reserved © May 2014 US Muslims | Unauthorized and the resources published.
    Haber Scripti: CM Bilişim