MNI EXCLUSIVE: China Reluctant To Reveal Trade Deal Details

     BEIJING(MNI) - China is reluctant to confirm details of promised purchases

of U.S. goods agreed under its phase one trade deal with Washington, policy

advisors told MNI, pointing to sensitivities over World Trade Organization rules

and possible objections by other countries.

     U.S. Trade Representative Robert Lighthizer said on Friday the deal would

push total Chinese purchases of U.S. farm goods to $40 billion a year at first,

moving towards $50 billion later, as part of additional exports of $200 billion

over two years.

     But China would rather keep details of the purchases in reserve, advisors

said. One pointed to WTO rules forbidding countries to discriminate between

trading partners.

     Another policy advisor also questioned whether the Chinese government could

even in practice order its companies to buy enough U.S. products to meet the

terms of the deal.

     --GOVERNMENT PROCUREMENT

     In a statement on Friday, the Chinese government said that its purchases

under the deal would comply with WTO requirements.

     One solution might be for China to place orders through government

procurement for state farm product reserve stockpiles, the second official said,

adding that this would be permissible under the WTO regime.

     A third official close to policymaking circles told MNI "It's very

challenging and hard for China to fulfil its commitments."

     China's demand for agricultural imports is likely to be limited by an

economic slowdown and by the effects of African Swine Fever, which has

devastated pig herds, reducing the need for U.S. soybeans as feed.

     "The current deal poses a big challenge," said the third person, adding

that Beijing is sceptical about the chances of reaching a more comprehensive

trade deal with the U.S. under President Donald Trump.

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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