President Donald Trump announced a new trade deal with China Friday that means more beef exports.
Schumacher, of Herried, South Dakota, said the United States cattle market has been on an unexpected rise for several months and he hopes that the trade arrangement with China will further improve the market and give the cow-calf producer the same profit opportunities that feeders are enjoying now. Following one more round of technical consultations, beef exports from the U.S.to China will begin as soon as possible, but no later than July 16.
Both countries are also agreeing to open up US exports of liquefied natural gas to China, which would be advantageous to both countries.
While it is uncertain how the new agreements will narrow the trade gap, Beijing's concessions have offered Trump some concrete results he can show to his domestic audience. He also needed a diplomatic victory to distract from the cloud surrounding his abrupt dismissal of his Federal Bureau of Investigation chief, James Comey.
During his campaign for office, Trump threatened belligerent moves such as slapping tariffs on imports. Trump has since softened his tone as he's sought the country's cooperation in mitigating the nuclear threat from North Korea. It's a good start but Beijing didn't give up much. "China relations on trade", Ross told reporters Thursday evening at the White House. Not only did he achieve visible progress on that front, he also brought Washington on board his Belt and Road Initiative.
And U.S. credit card operators Visa Inc and MasterCard Inc have yet to be independently licensed to clear transactions in China, despite a 2012 WTO ruling mandating that Beijing open the sector and rules issued by the central bank to let foreign firms enter the market. Beijing had already made a decision to lift the import ban on American beef in September, before Trump was elected.
China was the world's second largest consumer (7.7 million tonnes) and importer (812,000 tonnes) of beef in 2016, behind the United States.
China also agreed to speed up the process for approving certain US biotechnology products. "We can not politicise economic issues", Mr Zhu said.
In countries that have barriers to the free flow of global investment, like China, the government can also intervene to influence a currency's value. It remains to be seen what, if any, impact the agreement will have on the politically sensitive trade deficit that the USA has with China of around $350 billion a year. He said a similar deal for coal exports to China wasn't likely, given the far shipping distances. The two sides may extend the plan from 100 days to one year.
"The 100-day China-U.S. economic plan is a plan of cooperation, a plan of actions and a plan of win-win arrangements", Zhu said. Ross's Department of Commerce predicts that the gap will improve within the year.
The takeaway: "It's a lot like Trump's executive orders that talk a lot but didn't do much", according to the former USA official.