October 22, 2020

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China and the US promise to honor trade deals

China and the US promise to honor trade deals


Photo: ANP

China and the United States have once again committed to respecting agreements in the trade agreement between the major economic powers. The earlier phase 1 trade deal agreements between the countries were confirmed by phone on Tuesday.

The talks between US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Deputy Prime Minister Liu He brought some relief to the financial markets. Some nervousness emerged when it became apparent that China is falling short of the agreements made to buy American products.

It was the first time since early May that high-level consultations took place. The talks were actually scheduled for August 15, exactly six months after the conclusion of Phase 1 of the trade agreement.

US President Donald Trump put pressure on relations between countries by accusing China of withholding information about the corona virus. He recently said he didn’t want anything to do with China at the moment. There is also disagreement about the new security law in Hong Kong. Trump also accuses Chinese tech companies like Huawei and TikTok of espionage.

Beijing said the countries are holding constructive consultations. This means that the agreements from the previously concluded agreement are fulfilled. According to the US, issues such as protecting intellectual property rights, removing barriers to US businesses in the financial services and agriculture sectors, and eliminating forced technology transfers will also be discussed.

China must step up its US product purchases if it is to earn the additional $ 77 billion promised this year. In the field of agricultural products, among other things, Beijing is far behind the promised additional 36.5 billion US dollars. These agreements are important to Trump in view of his possible re-election in November. Trump had a lot of support from the agrarian states in the 2016 elections.