During President Donald Trump’s visit to Beijing, Xi Jinping, President of the People’s Republic of China, signed business agreements totaling more than $253 billion. The agreements signed between China, and the United States included arrangements that weren’t considered firm contracts, commercial sales agreements, and business deals focused on goods frequently purchased by Chinese companies.
Two of the largest agreements that were signed during the ceremony includes a deal to work together on an Alaskan gas project that’s valued at an estimated $43 billion, and a West Virginian shale gas project priced at $83 billion. Other contracts signed was a Chinese agreement to purchase 300 Boeing jetliners, mobile phone chipsets, General Electric jet engines, and soybeans. These additional four businesses deals have been said to total $53 billion.
On top of that, Ford Motors also committed to making China its joint venture to import vehicles, and auto parts. General Motors also made a similar deal with a value of $2.2 billion, while Ford Motors’ deal is worth $9.5 billion over 3 years.
The contracts signed between Trump, and Xi are supposed to defuse complaints that have been made against China’s trade and market barriers. Within these contracts, Trump gets the opportunity to take a political win after the first year in office that had little to no progress on health care, and taxes. Commerce Secretary Wilbur Ross has said that Trump has made narrowing the U.S. deficit with China a central focus, and a priority.
Following the business deal ceremony, President Xi made a promise to open the business environment for more foreign companies after President Trump made a vow to change any unfair trade relations. Xi has said that China won’t be closing its doors, and now that the arrangements have been finalized, he has promised a more organized, and transparent market.