China To Buy US Products Worth $200 Billion Over 2 Years As Part Of Phase 1 Trade Deal

As part of the 'phase one' trade deal that will be signed this month, China will purchase additional American products worth $200 billion over a period of two years, said US Treasury Secretary Steven Mnuchin on Sunday.

"It is $200 billion of additional products across the board over the next two years, and, specifically, in agriculture, $40 billion to $50 billion," Mnuchin told ABC News.

"This is a big opportunity for our farmers. I think some people have questioned whether they can produce it. The president said they are going to go out and buy more land and produce plenty of agriculture (products)," he said in response to a question.

Markets look forward to the signing of the US-China trade deal, that will de-escalate their two-year long tariff war.

Last week, US President Donald Trump said that the first phase of a pending trade deal with China will be signed "probably" on 15 January. China's commerce ministry confirmed that Vice Premier Liu will be in Washington from 13 to 15 January for the signing.

Mnuchin further said that there will be a 'phase two' and the first phase covers technology, agriculture and financial services issues that the US had with Chinese trade practices. He said that the deal to be signed this week includes real enforcement provision.

"If they don't comply with the agreement, the president retains the authority to put on tariffs, both existing tariffs and additional tariffs," he said.

On the day of signing, the White House will release the English version of the trade deal, he added.

With inputs from PTI