China has agreed to buy more agricultural and energy products from the US to help narrow a record bilateral trade deficit, following negotiations between the US and China in Washington. Speaking in a television interview on Fox News following the agreement, US Treasury Secretary Steven Mnuchin stated that the US-China trade war is "on hold".
“There was a consensus on taking effective measures to substantially reduce the United States’ trade deficit in goods with China,” as stated in a joint announcement issued by the US and China on May 19, following two days of negotiations between teams led by Chinese Vice-Premier Liu He and Treasury Secretary Mnuchin.
“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,” the joint statement said. “Both sides agreed on meaningful increases in United States’ agriculture and energy exports. The United States will send a team to China to work out the details,” the statement continued. The two sides are also to "continue to engage at high levels on these issues and to seek to resolve their economic and trade concerns in a proactive manner".
According to a report by China-based Xinhua net, Mr. Liu said, “This is a positive, pragmatic, constructive and fruitful visit. Both sides have reached a lot of consensus on the healthy development of Sino-US trade relations.” He also pledged to deepen cooperation on bilateral investment and intellectual property protection, but said it would take time to solve the structural problems facing the Sino-US trade relationship.