Averting a trade war, China and the US on Sunday struck a deal under which Beijing will "significantly increase" its purchases of American goods and services to reduce the whopping USD 375 billion trade deficit with Washington.
After lengthy second round of talks in Washington, the two sides issued a joint statement early on Sunday vowing not to launch a trade war against each other.
"There was a consensus on taking effective measures to substantially reduce the US trade deficit in goods with China," the joint statement said. "To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services," it added.
This will help support growth and employment in the United States. US President Donald Trump has threatened punitive measures against Chinese goods if Beijing does not cut down the trade deficit by USD 100 billion in a month and USD 200 billion by 2020. US says it has USD 375 billion trade deficit in USD 636 billion total trade last year.