Skepticism Over China's Promised Agricultural Purchases
In the phase one trade deal China committed to purchasing at least $40 billion of U.S. agricultural goods over the next two years, but there is skepticism over whether this commitment will be fulfilled, according to The Wall Street Journal.
Farmers in the U.S. have been hit hard by the trade war and there was hope that a trade deal would help make up for the hardship. This wish seemed to have come true when the U.S. and China announced that they had agreed to a limited trade deal and that China had promised to purchase $40 billion of farm goods over the next two years.
Skeptics don't believe that China will purchase $40 billion of agricultural goods because it is almost twice as much as China purchased prior to the trade war. “They need U.S. pork, they need U.S. soybeans. Do they need $50 billion of agricultural goods? Absolutely not,” said Dave Marshall, a farm-marketing adviser.
The skeptics are not denying the possibility of such a jump in growth, but history has not shown such large scale growth being feasible. Furthermore, the deal is not in writing yet.
There is skepticism regarding China's promised $40 billion in U.S. agricultural goods over the next two years.