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‘Warm Up’ Trade Deals with China Announced; $250 Billion Rumored

Nov. 8, 2017 (EIRNS)—The first round of trade deals sealed during President Trump’s trip to China, was discussed today by Commerce Secretary Wilbur Ross and Chinese official Wang Yang. They were described as "warm up" trade deals, and are pegged at $9 billion.

During a meeting, Ross reported said that papers are being prepared for understandings of some $250 billion in trade and investments, which will be announced during the visit.

Of the $9 billion, $2 billion will be for "food products," including soy beans. Included in the rest, is money to go into American company, JD.com, and the purchase of natural gas, Bell helicopters, and "financial services."

The much larger, rumored package concentrates on agriculture and on energy infrastructure, according to a Bloomberg News report today. A $7 billion investment of China’s Sinopec oil/gas company in pipeline and storage infrastructure on the Texas Gulf Coast and in the U.S. Virgin Islands, had already been reported several days ago. So had an agreement for a small ($5 billion) infrastructure fund between China Investment Corp. (a sovereign wealth fund) and Goldman Sachs. Another large deal was reported to involve China Industrial and Commercial Bank—a major investor in infrastructure in China and on the Belt and Road—and GE.

Bloomberg reported that an agreement was being signed between Caterpillar and Shenhua Group Corp., which has large assets in coal, electric power, and railroads; and another between General Electric and China Datang Group, which operates power plants.

Commerce Secretary Ross said that the deals or memoranda of understanding would have to go through the U.S. national security review process.