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US, China Ink Trade Deal Promoting Financial Services, Gas and Beef

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US, China Ink Trade Deal Promoting Financial Services, Gas and Beef FUNDING ISSUES | Page 2 HANDOVER DAY | Page 9 Home Capital China ready eyes asset to support disposals HK market Saturday, May 13, 2017 Sha’baan 17, 1438 AH PICKUP IN ECONOMIC GROWTH : Page 12 US retail sales rise GULF TIMES broadly; consumer BUSINESS prices rebound Saudi said to boost US relations with US, China ink trade deal $40bn investment Bloomberg London Saudi Arabia is preparing to cement ties with Presi- dent Donald Trump by committing to unprecedented promoting fi nancial investments in the US. The kingdom’s sovereign wealth fund is set to announce plans to deploy as much as $40bn into US infrastructure, according to people familiar with the matter. The investment may be unveiled as early as next week to coincide with Trump’s visit to the kingdom, said the people, asking not to be identi- services, gas and beef fied as the information is private. No final decisions have been made and the announcement may still be Bloomberg an LNG terminal in the US Northwest that delayed, they said. Washington would ship gas to Asia. China imports of US Saudi Arabia is eager to reset relations with the liquefi ed natural gas picked up last year af- new US administration after feeling shunned by Presi- ter Cheniere Energy launched the fi rst in a dent Barack Obama, who crafted the 2015 nuclear he US reached agreement with China wave of new plants designed to liquefy and deal with Iran. to promote market access for Ameri- export abundant US shale gas. American The kingdom claimed a “historic turning point” in Tcan natural gas, fi nancial services and supplies accounted for almost 7% of China’s bilateral relations after President Trump met Saudi beef that Commerce Secretary Wilbur Ross total imports in March, customs data shows. Arabia’s Deputy Crown Prince Mohammed bin Salman said was part of a broader eff ort to begin re- Chinese companies already have long- in the White House earlier this year. On May 19, Trump shaping the trade relationship between the term contracts with non-US suppliers for will make his first foreign trip since taking off ice, world’s two largest economies. more LNG than domestic demand requires visiting Saudi Arabia and Jerusalem before heading The agreement covers 10 areas where ne- through at least 2023, according to Bloomb- to Europe. gotiators from the two sides have reached erg New Energy Finance. A White House off icial, speaking on condition consensus, including agricultural trade and The Trump administration has given of anonymity, confirmed that the plans were in the issuance of both bond writing and set- the go-ahead for a handful of proposed US the works and that Trump’s son-in-law and senior tlement licenses to two qualifi ed US fi nancial LNG ventures to ship their fuel to coun- adviser, Jared Kushner, had played a critical role in institutions. By mid-July, US beef producers tries without free-trade agreements, such the discussions. A representative for Saudi Arabia’s will have broader access to Chinese markets, as China. Public Investment Fund declined to comment. The while America will move forward on allowing Those projects need to secure long-term Ministry of Finance didn’t immediately respond to the import of cooked poultry from China, ac- supply agreements to underpin their fi- requests for comment. cording to a joint statement announcing the nancing before construction can begin. Trump in March offered his support for develop- deal. “This will only help raise the market ing a new US-Saudi programme in energy, industry, The statement didn’t appear to change sentiment, but not change anything ma- infrastructure and technology that could be valued access for Chinese companies to US natural terially in the foreseeable future,” said at more than $200bn in direct and indirect invest- gas exports, but welcomed China to receive Maggie Kuang, a Singapore-based analyst ments within the next four years, according to the shipments and engage in long-term supply at BNEF. White House. contracts with American suppliers. Ross said US President Donald Trump (right) and Chinese President Xi Jinping shaking hands during Ross said the agreement would help to re- The president has said he intends to push offi cials from Dow Chemical Co gave assur- dinner at the Mar-a-Lago estate in West Palm Beach, Florida, on April 07. The agreements duce the growing US trade defi cit with China for$1tn in US infrastructure investments over the ances that increasing exports of natural gas announced yesterday appeared to build on or repeat some commitments that China has — the country’s largest, totalling $347bn in next decade, with $200bn coming from taxpayers wouldn’t harm the US industry or consum- already made. Still, they represented the first negotiated pact on trade for Trump, who 2016 — and help lead to additional negotia- and the rest from the private sector. ers if sales remained less than 30% of total campaigned on promises to get tough on China on trade before softening his tone as he’s tions over the next year that could address Saudi Arabia is planning to expand its sovereign output. sought cooperation on North Korea. other parts of the relationship. wealth fund into the world’s largest as part of its “This will let China diversify, somewhat, “This was pretty much a herculean accom- attempts to diversify away from oil after prices their sources of supply and will provide a “We’d like to see the actions that go with that it said would clear the way for foreign plishment to get this done,” he said. “This is slumped. The kingdom will transfer ownership of huge export market for American LNG pro- the commitments,” Gibbs said in an e-mailed firms. Also in the plan, China agreed to al- more than has been done in the whole history Saudi Arabian Oil Co to the PIF, as well as the pro- ducers,” Ross told reporters at a White House statement. “Past foot-dragging means we low foreign-owned firms to provide credit of US-China relations on trade.” ceeds from the oil company’s initial public off ering. briefi ng on Thursday, using an acronym for won’t celebrate until these promises are ex- ratings by July 16. China’s Ministry of The deal reaffirms a September agree- The fund could eventually control more than $2tn, liquefi ed natural gas. ecuted.” Commerce and National Development and ment to reopen China to US beef exports. Prince Salman has said. The agreements, which grew out of a 100- Chinese Vice Finance Minister Zhu Reform Commission had already proposed This time, China promised to allow Ameri- Since last year, the PIF has funnelled about $50bn day action plan announced during an April Guangyao, speaking at a briefi ng in Beijing draft regulations in December that would can beef into the country after one more of the kingdom’s reserves into investments abroad, meeting between President Donald Trump to announce the agreements, defl ected ques- have opened up that market. China will round of technical consultations, and no almost all of it into technology. It has said it will and Chinese counterpart Xi Jinping, ap- tions about details, repeatedly describing the issue both bond underwriting and settle- later than July 16, according to the joint commit as much as $45bn to partner with SoftBank peared to build on or repeat some commit- measures as “balanced.” ment licenses to two qualified US financial statement. Group Corp to set up a new $100bn vehicle to invest ments that China has already made. Still, “The 100-day China-US economic plan is institutions as well. It also paves the way for China to export in global technology. The fund also invested $3.5bn in they represented the fi rst negotiated pact on a plan of cooperation, a plan of actions and While Trump made the revival of Amer- cooked poultry to the US. The US will publish Uber Technologies last June. trade for Trump, who campaigned on prom- a plan of win-win arrangements,” Zhu said. ica’s coal industry a hallmark of his cam- a proposed rule by July 16 to help jump-start Still, the Saudi government’s economic reforms ises to get tough on China on trade before China agreed to give “full and prompt paign, his administration seems to be ac- the imports, it said. have caused push back at home as residents com- softening his tone as he’s sought cooperation market access” to payments companies, knowledging the potential jobs bonanza Gai Xinzhe, a researcher at the Bank of plained about slashed government spending and the on North Korea. like Mastercard, Visa and American Ex- offered by the two dozen applications un- China’s Institute of International Finance in suspension of some allowances for state employees. Ker Gibbs, chairman of the American press Co. The US brought a case against der review to build LNG export terminals. Beijing, said China appeared to off er more Prince Salman said this month that 50% to 70% of in- Chamber of Commerce in Shanghai, called China on its electronic payment services Ross said a deal for coal exports to China than the US, but called concessions “pretty come from its initial public off ering of Saudi Aramco, the commitments a “good beginning” to- market in 2010. After a World Trade Organ- wasn’t likely, given the far shipping dis- even from both sides.” what may be the largest-ever listing, will be used on ward addressing several market-access is- isation panel ruled against it in 2012, Chi- tances.
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