China suspends more USA tariffs

Share

Both parties, according to officials in Beijing and Washington, said they were making "good progress" on implementing the "phase one" agreement struck in mid-January.

Under the deal, the Trump administration agreed to postpone any further tariff increases, while China promised a $200-billion increase over two years in its purchases of USA products compared to the 2017 levels.

China is committed to its Phase 1 trade deal with the United States and is working towards meeting its promise to boost US purchases, even though the pace of buying has been restrained by the coronavirus outbreak, three Chinese sources said.

China's embassy in Washington did not immediately respond to a request for comment, but Beijing has insisted it has been transparent about the outbreak, which began in the Chinese city of Wuhan. The US goods trade deficit with China was United States dollars 419.2 billion in 2018.

The deal would require China to purchase $200 billion worth of USA goods and services by 2021, but there are concerns that due to the economic effects of the pandemic, it would not be able to uphold this requirement.

US President Donald Trump Trump has blamed China's early handling of the new coronavirus outbreak.

Coronavirus: I’m not happy with China – Trump explodes

The newspaper, Global Times, quoted a trade adviser as saying: "It is, in fact, in China's interests to terminate the current Phase One deal".

-China trade deal. While speaking with reporters Monday, he said China would only want to make changes that would benefit them.

Only last week, Trump administration officials said, after consulting with Chinese Vice Premier Liu Hem "both countries fully expect to meet their obligations under the agreement in a timely manner".

State-run buyers have purchased more than 20 cargoes, or over 1 million metric tons, of American soybeans in the past two weeks, said the people, who asked not to be identified because the information is private.

In a video conference held by the Asia Society on Tuesday, Chinese Ambassador to the WTO Zhang Xiangchen (張向晨) denied the accusations made by the USA, stressing that China still has a long way to go before it achieves a balanced and successful economy. Chinese investment in the USA dropped to $5 billion that year from $5.4 billion the year before, according to the report.

Heads of the Chinese and USA trade consultation teams had a phone conversation on May 8, agreeing to work toward creating enabling atmosphere and conditions for the implementation of the phase one trade deal and strive for more progress, he added.

Is Remdesivir-Maker Gilead Sciences a 'Buy'?
With no other approved treatments for Covid-19, interest in the drug is growing around the world. This has already been authorised by the Spanish Medicines and Health Products Agency.


Share