China proposes buying $200 billion of American goods, US officials say

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Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney said China had shown the American president that unilateral trade action could hurt America, too. "This I can confirm to you", Chinese foreign ministry spokesman Lu Kang told a regular news briefing.

China's Commerce Ministry said on Thursday that the government in Beijing hoped to resolve the trade frictions during the latest round, ending Friday.

The Commerce Ministry announced the halt Friday, saying punitive measures on imports of the grain would "affect the cost of living for consumers" in China.

Washington, May 18 China may buy up to Dollars 200 billion worth of American goods under intense pressure from the Trump administration to reduce its massive trade deficit with the United States, a media report said today, amid a round of high-level trade talks between the world's two largest economies.

China imported $956 million of sorghum from the United States past year, according to the Commerce Ministry.

Shipping containers are seen at Nansha terminal of Guangzhou port, in Guangdong province, China, June 14, 2017.

Higher tariffs for USA sorghum would have hurt farmers in states such as Kansas, Texas, Colorado and Oklahoma, which are also major Republican-leaning states that make up President Donald Trump's base. Beijing still threatens to slap aggressive 25 percent tariffs on a swathe of USA farm goods, including sorghum and soybeans.

It said that higher sorghum prices would eventually impact on consumers.

A White House statement described the meetings as part of "ongoing trade discussions" and said Trump met the Chinese delegation led by Liu and the USA team led by Mnuchin.

That top-line number in the Chinese offer would largely match a request presented to Chinese officials by Trump administration officials in Beijing two weeks ago.

Separate Chinese tariffs on around $3 billion of US products including fruit, nuts and pork were imposed in March in response to Trump's decision to slap tariffs on iron and steel imports.

The two biggest US exports to China were aircraft at $16 billion past year, and soybeans, at $12 billion. Authorities imposed preliminary anti-dumping tariffs of 178.6 p.c final month on the crop, which is used primarily for animal feed and liquor. "We are now saved", said a private sorghum trader who had over 600 tonnes of USA sorghum stranded at a Chinese port.

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