China is the top export market for USA agriculture products, with the total value of exports rising by more than 1,100% since 2000 to US$21.41 billion in 2016, so beef sales are potentially lucrative for USA exporters. Rep. Rosa DeLauro, D-CT, said in a statement, "Despite his promise to stand up to China, President Trump is now allowing the Chinese to write the rules with this new trade agreement". "We will once again have access to the enormous Chinese market, with a strong and growing middle class, which had been closed to our ranchers for a long, long time".
US Meat Export Federation USMEF welcomes today's announcement that the United States and China have reached a high-level agreement that will allow USA beef to reenter the Chinese market after a prolonged absence of more than 13 years.
North Dakota cattle producers cheered the reopening of the Chinese market to USA beef. The trade agreements, which are set to enter force by July 16, will allow United States firms more access to the Chinese market for goods and services.
China will allow USA imports of beef no later than July 16, and the United States will issue a proposed rule to allow Chinese cooked poultry to enter US markets.
The agreement would also ease import restrictions on agricultural goods, including ending China's ban on beef imports that was imposed in 2003 after a case of mad-cow disease. The US is agreeing to allow the import of poultry that is cooked in China then shipped here.
"The United States can no longer sustain this inflated trade deficit with our closest trading partners", Ross said in a press release. Japan ($1.51 billion) and South Korea ($1.06 billion) were the top buyers of USA beef exports.
"The meat industry has long sought access to the Chinese market for USA beef, making today's announcement a significant and very welcome milestone", said Meat Institute Chairman and Bob Evans Farms President and CEO Mike Townsley. "The end of this embargo will re-open a large market for Kentucky beef producers that has always been closed". JPMorgan in February said it would be allowed to underwrite corporate bonds there, while Morgan Stanley was granted permission to boost its stake in a Chinese securities venture to 49 percent.
President Trump touted the deal on Twitter this morning and fired back at critics saying "this is real news". "According to our estimates, it will be reduced by 5-10 percent, if the United States continues to expand trade in other sectors of the economy", Vadim Merkulov, an analyst from Russian investment firm Freedom Finance, said.
In the past several months, the number of U.S feeder cattle sent north to Canada has doubled over the past four years, which signals the market is good up there, Petry said.
Without the leverage to block these types of deals, the Trump administration has given away major leverage in gaining future concessions for the tech industry in trade talks, Atkinson said.
Randal Phillips, Mintz Group's Beijing-based managing partner for Asia, said that Washington was too focused on selling more to China and should instead seek to address structural imbalances created by Chinese industrial policies and barriers to investment. Previous administrations have hailed market-opening agreements only to be left disappointed.
Foreign-owned companies in China will also be able to provide credit rating services.
"We are very pleased with the announcement that an agreement has been made to restore trade with China", said Chuck Crutcher, president of the Kentucky Cattlemen's Association.
The two countries have also agreed to hold high-level talks this summer to be led by Ross, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Wang Yang to work on a one-year plan.
"We believe that Sino-US economic cooperation is the trend of the times..."