Details are emerging of China's purchase commitments from the U.S under a historic phase one trade deal between the two economic superpowers to be signed later Wednesday in Washington.
U.S. sources have told FOX Business the purchases will total $205 billion to $210 billion over two years while Chinese sources indicate the buys would be between $215 billion and $220 billion.
“There’s a very detailed dispute-resolution process,” Treasury Secretary Steven Mnuchin told FOX Business’ Lou Dobbs on Tuesday evening. “This is an enforceable agreement just as the president dictated it would be.”
The pact, which follows a trade war of nearly two years, is slated to be signed by U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He at the White House. The purchase details are contained in a section of the agreement that officials have said won't be made public.
Beijing will purchase up to $50 billion of crops, according to President Trump and Treasury Secretary Steven Mnuchin, $40 billion of which has been confirmed by Chinese sources. China has also agreed to buy $40 billion in services, $50 billion in energy and $75 billion to $80 billion worth of manufacturing, according to Chinese sources.
"This is a great win for American business and American farmers," Mnuchin said.
Aside from the more than $200 billion of Chinese purchases, Beijing has agreed to stop the theft of intellectual property and refrain from manipulation of its currency. The U.S., in return, will reduce tariffs on some products made in China while keeping duties on $375 billion worth of Chinese goods.
The administration has held out the possibility of removing the duties under a later phase of the trade agreement, which Trump has said may require as many as three sections.
Phase two negotiations will start "right away," Trump has said.