President Donald Trump is on his Asia tour where he is meeting with leaders in Japan, China, South Korea, and many others. The President’s meetings in China ended up turning into a significant victory for the United States.
The highlight of Trump’s China visit is a new trade deal established between the US and China. According to Bloomberg, the White House released a slew of agreements that lands the US an extra $250 billion in business deals. There are many outlets where this money will flow in and out via trade, and it all leads to a stronger economy and closer relationship with China.
Many of the agreements in this deal were not broken up into separate entities. Instead, they are in a group consisting of non-binding memoranda of understanding.
The first order on the table is a $37 billion aircraft order. This is a combination of old deals that were already in place, combined with new deals to make it one solid packaged deal.
An unveiled $48 billion project between China and the Alaska Gasline Development Corp is also finally in motion. The deal was in the works for years and has finally reached a close. The Alaska Gasline applied for their approval to start developing in April.
China also stated that they are interested in investing in West Virginia shale gas development as well as chemical manufacturing projects over the next two decades. This investment alone is worth $83.7 billion.
This total is more than the $73.4 billion West Virginia brought in last year on domestic products.
China agreed to buy 300 aircrafts from Boeing, bringing an additional $37 billion. The order is mostly for jets and has technically been in place since 2013. The deal was reassured and will continue through until 2020.
The deals extend to the beef business as well. JD.com Inc said that they would buy $1.2 billion in beef from Montana Stock Growers Association as well as pork from Smithfield Foods Inc. over the course of three years. The beef portion of the deal would involve the US exporting the beef to China.
Pork, on the other hand, will require Smithfield factories to be created in China so that the meat can be prepared and shipped from there. There would seemingly be profits from this deal coming back to the US to open up more factories and create more US jobs.
President Trump just announced that the US will expand trade with China to strengthen the economy and Chinese relations. Should the US make this move?
It does not end there; this massive deal with China involves many more industries. Fields such as finance, technology, and manufacturing will play a part in bringing more products to China while assuring job creation and security in the United States.
There is little doubt that this deal was established and reaffirmed by President Trump as an effort to get China to distance themselves from North Korea. The dictator-run country relied heavily on China for their trade and a blow to their relationship would only further cripple North Korea. Expanding trade with China entices them to cut back on trade with North Korea, and ultimately works toward the goal of bringing the US and China closer together.