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China to pump up U.S. car, aircraft, energy purchases in trade deal: source

FILE PHOTO: Chinese and U.S. flags are set up for a meeting during a visit by U.S. Secretary of Transportation Elaine Chao at China’s Ministry of Transport in Beijing, China April 27, 2018. REUTERS/Jason Lee

WASHINGTON (Reuters) – China has pledged to buy nearly an additional $80 billion of manufactured goods from the United States over the next two years, plus just over $50 billion more in energy supplies, under a trade deal with China to be signed on Wednesday, a source briefed on the agreement said on Monday.

Beijing would also boost purchases of U.S. services by about $35 billion over the same two-year period, the source said, aiding a sector that enjoys a rare trade surplus with China.

The Phase 1 agreement calls for Chinese purchases of U.S. agricultural goods to increase by some $32 billion over two years, or roughly $16 billion a year, the source said.

When combined with the $24 billion U.S. agricultural export baseline in 2017, the total gets close to the $40 billion annual goal touted by U.S. President Donald Trump.

Reporting by David Lawder and Andrea Shalal; Editing by Christian Schmollinger

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