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Report: China wary of long-term deals with US over purchases of American goods

China is reluctant to enter into long-term purchase contracts with the U.S. related to American farm and energy products partly due to President Donald Trump's looming tariffs and restrictions on Chinese investments, The Wall Street Journal reported, citing people with knowledge of the exchanges from both sides.

The two countries are scheduled to hold high-level trade negotiations on the weekend of June 2, with U.S. Commerce Secretary Wilbur Ross expected to lead the discussions.

Ahead of the planned two-day meeting between Ross and the head of China's trade delegation, Vice Premier Liu He, an advance team of American trade negotiators tried to convince its Chinese counterpart to enter into multiyear purchase agreements. But the Chinese team was reluctant to agree to long-term commitments as Beijing prefers "control and leverage," one unnamed source told the Journal.

Such long-term deals would help the U.S. ask China to cut its tariffs and ease regulations and other barriers to imported goods. But Trump's decision to move forward with tariffs on $50 billion in Chinese goods and take actions to limit China's access to U.S. technology may have affected the prospects for Ross' mission, according to the report.

China had earlier agreed to increase its purchase of U.S. agricultural and energy product in a bid to help reduce the $375.2 billion goods and services trade deficit the U.S. runs with the Asian country.