Uncertain fate of US-China trade agreement

The future of the US-China trade deal is likely to be decided next week as President Donald Trump becomes increasingly dissatisfied with Beijing.

President Trump is torn

In the context of US-China relations are in tension around many issues, trade representatives of the two sides on 8.5 suddenly had a phone call that is believed to bring many positive signals. Reuters quoted a statement issued by China ‘s Ministry of Commerce after a phone call emphasizing that the two sides agreed to strengthen macroeconomic cooperation and public health efforts to create favorable conditions to implement the agreement. trade phase 1, at the same time pledging to maintain dialogue.

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However, in an interview on Fox News later, US President Donald Trump said he was in a difficult period with China, especially on trade issues. According to the White House owner, he was very tough with China and reached a good deal, whereby it had to buy $ 250 billion of US products, but then the Covid-19 pandemic occurred.

Newspaper The New York Times led many data showed China is far less purchasing power as desired by the US under an agreement with the Czech stage 1. This country has just stood up from translation Covid -19 is unlikely meet the goals set by the agreement until the end of 2021.

These developments are said to be increasingly eroding President Trump ‘s faith in China, especially when the leader said that Beijing “concealed a bad mistake” about the Covid-19 epidemic, causing tens of thousands of Americans died and millions lost their jobs.

On Friday, President Trump threatened to cancel the first-stage trade deal if China did not buy enough quantities and promised to assess Beijing’s compliance before the following weekend. Answering on Fox News, President Trump said he was “very torn” about the future of the agreement but has not made a decision.

Serious consequences

Relations between the United States and China are believed to be escalating to a more intense level than the trade war period in 2019. In addition to trade disagreements, the United States also conflicts with China over the Covid-19 pandemic, policies with Hong Kong and Taiwan and China’s destabilizing practices in the South China Sea.

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Observers said the discord would be further pushed up if the first-phase trade agreement did not progress properly as the Trump administration considered it an important achievement, helping to strengthen the re-campaign.

Prior to the 8.5 day phone call, US Treasury Secretary Steven Mnuchin warned of “very serious consequences” in US-China relations as well as the global economy if China did not comply with the agreement with the US.

Currently, there are still many opinions in the US that expect the White House to delay. US National Economic Council Director Larry Kudlow said on Friday that China is still assuring the US that it will honor its commitments, according to Bloomberg.

Meanwhile, the US-China Business Council (USCBC), which represents US companies operating in China, said it was too early to assess China’s commitment as the deal was only valid. from mid-February when the disease occurred. USCBC President Craig Allen said the situation would be extremely unstable if the US withdrew from the agreement without giving China the opportunity to make commitments.

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