Further details on how China plans to boost imports from the U.S. by as much as $200B in the next two years to meet its commitments under the Phase One trade deal reached last week are emerging.
Among those commitments are purchases of $40B-$50B per year in agricultural commodities, a level that some analysts see as unrealistic.
To help reach that target, Beijing plans to restart purchases of ethanol by lifting or waiving trade-war tariffs on the fuel, Bloomberg reports, citing people familiar with the matter.
It's also considering re-routing trade that currently passes through Hong Kong to ports in mainland China, they said. The U.S. doesn't consider goods that go through Hong Kong as part of its trade with China.
But China's leaders are weighing how they might execute the so-called entrepot trade, as it could further depress Hong Kong's struggling economy and risk exacerbating political tensions there.
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