A currency devaluation is expected to be a key aspect of the US president’s plan to renegotiate the North American Free Trade Agreement (NAFTA) as he tries to boost US exports to Asia.
China is currently in talks with the Trump administration on a possible reopening of the FTA.
The US president has pledged to renegotiating the agreement but has yet to announce his plans.
China’s currency is currently trading at about US$1.25 to the US$2.20 US dollar.
The devaluation could also affect the value of imports such as corn, which the country has been importing at a healthy rate of about US $1.3 million per month.
According to Reuters, the Chinese government plans to increase its purchases of US corn and wheat, and cut its purchases from other crops, which are considered to be high-value imports.
The government has also been pushing for a bilateral trade agreement with Japan, which could result in more bilateral trade between the two countries.
Read more: Chinese President Xi Jinping said on Wednesday that China will increase its import of US wheat and corn, the country’s foreign ministry said, adding that the move will boost domestic market and help boost the economy.
China’s currency has been trading at US$3.20 to the dollar since January 2017, according to the Shanghai Composite.
Reuters reported on Wednesday evening that the Trump Administration was planning to announce the reopening in a letter to the President.
The letter said it would also provide additional assistance to the China-U.S. Free Trade Area (FTA), which includes China and the United States.
The FTA was originally set to be reopened on March 24, 2018, but was postponed due to Trump’s decision to withdraw from the deal.
The letter said the administration was working with China and other partners to ensure that all of the benefits of the re-opening of FTA are maximized for American workers, businesses and consumers.
Trump, who has said he is open to reopening the trade deal, has not specified when the reopens would occur.
China has been negotiating a deal with the United Kingdom on the FTA since 2017, but the talks have stalled since then.
In a statement, the US Trade Representative (USTR), who is in Beijing, said the Trump-Xi meeting had been “very productive and productive” and the two sides agreed to “extend the talks in the coming months.”
The USTR also noted that the FTA has been an important element of bilateral trade and investment relations between the United State and China.
Chinese officials have said the USTR was looking for a more inclusive trade deal to strengthen bilateral ties.