Tags: china | bilateral trade | liquid natural gas | beef

Trump's US-China Trade Deal Victory Underplayed by Media

Trump's US-China Trade Deal Victory Underplayed by Media
In this Jan. 19, 2017, photo, a liquefied natural gas tank ship is guided through the Cocoli locks, part of the new Panama Canal expansion project in Cocoli, Panama. (AP Photo/Arnulfo Franco)

By Monday, 15 May 2017 11:03 AM Current | Bio | Archive

On May 12, President Trump signed a deal to boost bilateral trade with China.

For the first time in recent history, the United States will export beef and liquefied natural gas (LNG) to China. The agreement will be implemented by July 16, 2017.

China is slated to become a leading LNG importer as it shifts from coal to cleaner energy. Natural gas is the cleanest fossil fuel and it is expected to replace coal for power generation within the next decade.

Because U.S. LNG is more competitive than Russian pipeline gas, China could soon become the main importer of American gas.

Three weeks ago I met the representatives of 150 Chinese energy companies in Beijing to discuss President Trump’s energy policy. They expressed great interest in purchasing American goods and commodities.

The deal signed last Friday will revive American LNG and food industries, creating jobs and generating tax revenue for the coming years.

It is also a clear sign that the Trump Administration is setting aside ideological differences and is pursuing a pragmatic policy with China, directed at improving trade between the world’s two largest economies.

Such policy might have significant geopolitical implications: in fact, last month China decided to abstain rather than join Russia in vetoing a U.N. Security Council Resolution to condemn a chemical attack in Syria. During the Obama Administration, China had always sided with Russia on the issue of Syrian and Iranian sanctions. The break-up of the Sino-Russian voting bloc in the Security Council is an important success of Trump’s foreign policy.

China has plenty of good reasons to develop closer ties to America than Russia: the United States is the main trade partner of China and bilateral trade between USA and China is ten times higher than trade between China and Russia. The Russian economy was severely affected by the collapse of oil and gas prices in 2016 and its GDP is much lower than Italy, which has half of Russia’s population.

China also plays an essential role in finding a solution for the North Korean crisis because it is the main trade partner of North Korea.

In its thirteenth Five-Year Plan, released in 2015, China vowed to boost domestic consumption while steering away from export-led growth. This policy can increase U.S. exports to China and boost American economic growth.

During the meeting between President Trump and Xi Jinping in Florida, the Chinese President invited a U.S. delegation to attend the Belt and Road Forum for International Cooperation in Beijing. The Belt and Road Initiative represents a pillar of Xi Jinping’s policy to build a new Silk Road to Europe. China is planning to invest billions of dollars in this project, which is an excellent business opportunity for American companies.

In an interview on Fox last Saturday, President Trump complained about the scarce media coverage of the trade agreement with China. He had good reasons to do it, because the deal represents an important milestone in U.S.-China relations and shall not be overlooked by the press.

Francesco Stipo is the President of the Houston Energy Club, a member of the National Press Club in Washington D.C., a Fellow of the World Academy of Art and Science, and recently joined the Bretton Woods Committee. Born in Italy in 1973, Dr. Stipo is a naturalized United States citizen. He holds a Ph.D. in International Law and a Master Degree in Comparative Law from the University of Miami. To read more of his reports, Click Here Now.

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On May 12, President Trump signed a deal to boost bilateral trade with China.
china, bilateral trade, liquid natural gas, beef
Monday, 15 May 2017 11:03 AM
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