The US and China signed an agreement Thursday to buy two dozen of China’s most advanced cars and trucks, including a new model for the first time.
The agreement comes at a time when US President Donald Trump is considering a new trade policy aimed at helping to push China into new markets.
China has already bought more than 100,000 US vehicles, mostly from American companies, and has invested billions of dollars in its auto industry.
Analysts say the new agreement will make the US more competitive in Asia, where automakers and suppliers compete for a shrinking pool of customers.
China, the world’s second-largest auto market after the US, has long been a key supplier of American vehicles, and the deal marks the first step in the US auto industry’s strategy to gain a foothold in China.
The new model, the first in a line of cars by General Motors, is designed to help Chinese automakers compete with the American giants, said Jefferies analyst Michael Fisch.
China is the largest automotive market in the world, accounting for more than 90 percent of global sales.
The deal will be worth about $50 billion, the company said in a statement.
General Motors has about 1.6 million employees in the United States and has investments in about 25 million U.S. vehicles.
The $50-billion deal, known as the Strategic and Critical Materials Agreement, is not subject to an export embargo and will allow US manufacturers to ship parts, parts components and components directly to China for use in the Chinese auto industry, the US state department said.
The two automakers signed the deal in Beijing and the agreement is expected to be approved by the Chinese government.
The United States has become increasingly concerned about China’s growing manufacturing and trade ties with China.
China’s economy is growing rapidly, and its growing population is taking its toll on its environmental standards, said James Dobbins, an expert on Chinese trade at the Washington Institute for Near East Policy.
China’s leaders have been criticized for lax enforcement of environmental laws and a lack of environmental regulations.
In the past, the United State has relied on China’s export-controlled factories and technology to build cars for export.
The Trump administration has tried to shift the focus of its efforts away from China’s economic problems and towards other countries and industries, including the North American Free Trade Agreement.
The trade agreement is designed in part to help the US trade with China to reduce the costs of Chinese imports.