US-China signs trade contract worth $220 billion on Trump visit

Beijing, November 10: As a result of US President Donald Trump's 1st visit to China, both nations signed business contracts worth $220 billion. US Commerce Secretary Wilbur Ross signed 19 agreements. This is a sign of both the nations moving towards a healthy relationship.

Other agreements included memoranda of understanding on liquefied natural gas sales and industrial development cooperation.

One of the most substantive agreements was a gas deal between the state of Alaska, Alaska Gasline Development Corp, China Petrochemical Corp (Sinopec), China Investment Corp and the Bank of China, involving a total investment of up to US$43 billion.

Officials said the joint development agreement will create up to 12,000 American jobs and reduce the trade deficit between the US and Asia by US$10 billion a year.

Contracts signed on Wednesday included a commitment by China’s major online retailer JD.com to buy US$1.2 billion of American beef and pork.

China is the US’ largest trading partner while the US is China’s second-largest. Bilateral trade surged to US$519.6 billion in 2016 from US$2.5 billion in 1979, when the two countries established diplomatic ties.

Over the past decade, US exports to China rose 11 percent a year on average, while China’s exports to the US were up just 6.6 percent. China holds a surplus in goods trade with the US while the US maintains a service trade surplus with China.

Jobs created by Chinese-invested firms across America had jumped ninefold since 2009 to 140,000 last year, according to a report by the National Committee on US-China Relations and Rhodium Group.

Meanwhile, US President Donald Trump has arrived in Vietnam to attend an international economic summit amid regional tensions.

During the trip he will address a CEO summit and outline his vision of free trade in the region, as well as threats posed by North Korea's aggressive nuclear weapons development.

Trump flew to Vietnam from China, where he abandoned the tough talk that defined his presidential campaign.