China and US to open their markets further, easing fears of trade war

China and the United States have reached a comprehensive trade deal well within their 100-day deadline, with Beijing promising to open some financial services to US players, to buy US gas and to end restrictions on beef imports.

The deal, which comes just five weeks after US President Donald Trump and his Chinese counterpart Xi Jinping agreed to address a US$350 billion trade imbalance within 100 days of their summit last month, is expected to lubricate ties between the two economies ahead of a planned China visit by Trump this year.

While the 10-point agreement is mainly about China’s promises to open its market wider to US firms and buy more of their products, Washington has also promised to facilitate Chinese bank entrance into the US market and to allow sales of cooked poultry products. Also, a delegation led by a top White House adviser will attend the “Belt and Road Initiative” summit in Beijing on Sunday, offering a sign of endorsement for Xi’s ambitious bid to extend China’s global influence.

Huang Rihan, a researcher at the Centre for China and Globalisation in Beijing, said the agreement put an end to worries about a “trade war” between China and the US.

“There were worries that Sino-US relations would worsen, and there were concerns that a lot of trade disputes would arise after Trump won the election, but now people can see that China and the US are not trade enemies – the two countries can work together,” Huang said.