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Report: China offers purchase of $70B of US farm, energy products

China offered to buy nearly $70 billion worth of American farm and energy products following weekend trade talks between the two countries in Beijing, The Wall Street Journal reported June 5.

The Journal, citing officials briefed on talks with American trade negotiators, said the offer included agricultural products such as soybeans and corn as well as natural gas, crude oil and coal, and is contingent on the U.S. dropping its plans to impose tariffs on $50 billion worth of Chinese imports.

The Trump administration has said it plans to release its list of Chinese imports to hit with an additional 25% tariff by June 15, with the tariffs being imposed shortly thereafter.

The offer came after Commerce Secretary Wilbur Ross met with Chinese trade officials in Beijing over the weekend of June 2. The purchase would be a win for the Trump administration, which has made it a priority to reduce the $375.2 billion trade deficit that the U.S. runs with China.

Reuters reported May 29 that the U.S. and China were nearing a trade deal that would boost U.S. exports of soybeans, grains, and beef and other meat to the Asian nation.

China imported $12.4 billion of U.S. soybeans in 2017.

Months of heated trade rhetoric between the two countries cooled slightly in May, when the U.S. and China agreed to temporarily suspend imposing tariffs on each other. An agreement reached with China would also boost U.S. agriculture exports to the country by between 35% and 40% by the end of 2018, according to Treasury Secretary Steven Mnuchin.