FAST FIVE: Yes, It's Possible: This Is How China Can Boost US Imports By $200 Billion
Yes, It's Possible: This Is How China Can Boost US Imports By $200 Billion Almost one month ago we showed in one chart why the core concession in the Phase One trade deal by China – namely the promise for a “best effort” to purchase $40 billion in agricultural products from the US – appeared impossible.
Those totals would certainly trim the roughly $300 billion annual trade gap between the countries.
However, doing so will not be easy without policy support,due to the lack of economic competitiveness.
Wheat, corn and rice are the specific agricultural products mentioned.
However, even after taking into account such supply and demand mismatches which impose physical constraints to how much China can buy from the US, the headroom seems wide enough for China to fulfill the $200bn list (Exhibit 2).