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China agrees to buy more US imports

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China has agreed to buy more imports of goods and services from the USA, reducing the trade imbalance between the two countries and calming fears of a trade war. Washington has not said how much more China has agreed to buy, but it says the agreement will “substantially reduce” its current $335bn annual trade deficit with Beijing.

Earlier this year the USA imposed huge tariffs on imports of steel and aluminium, and the President has threatened further tariffs on up to $150bn worth of Chinese imports.

China currently exports $462.bn worth of goods a year to the US, far more than it buys, but has threatened to impose similar tariffs on US imports. However, the two sides, which have been locked in negotiations for weeks, appear to have stepped back from a full-on trade war.