Despite Trump's threats, Washington and Beijing maintain trade deal

In a phone call on May 8, 2020, China and the United States agreed to create one of the favorable conditions for the phase 1 agreement signed in January 2020. Greg Baker / AFP

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The main Chinese and American negotiators on the trade had this Friday May 8 their first telephone interview since the beginning of the coronavirus crisis. They agreed to work together to facilitate the implementation of the “phase 1” trade agreement signed in January between the two largest economic powers in the world.

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Will the Sino-American trade war restart? Not yet. This is the meaning of the phone call between Beijing and Washington. In a statement released by the official Xinhua, the Chinese Ministry of Commerce said that Vice Premier Liu He, the US trade representative, Robert Lighthizer, and the Treasury secretary Steven Mnuchin agreed
that China and the The United States would work together to create an environment conducive to the implementation of the "phase 1" trade agreement signed last January.

Both sides said "  progress  " had been made to meet the terms of the agreement, Robert Lightsizer services said in a separate statement. They stressed that Washington and Beijing expect to meet their commitments despite the current health crisis. US and Chinese officials will continue to hold regular meetings via video conference, added Lightsizer.

China far from agreement goals

This first telephone call since the start of the coronavirus crisis comes against a backdrop of growing tensions between Washington and Beijing. The two superpowers are waging a "war of words" on the origin of the pandemic, for which the United States attributes responsibility to China.

This week, President Donald Trump has threatened to tear up the deal with China if it does not live up to its terms: that is, buy $ 200 billion worth of U.S. goods.

However, the latest figures from China's foreign trade show that it is far from fulfilling this objective, the Covid-19 pandemic having severely disrupted the global supply chain. Xi's country not only falls short of $ 200 billion in US purchases, but is $ 21.2 billion behind, according to data from US consulting firm S&P Global, Panjiva .

US customs threats

At the same time, Chinese exports started to rise again for the month of April with + 3.5%, defeating the forecasts of experts at -11%. Imports, however, fell sharply by 14.2%. In other words, the trade deficit with the United States, the workhorse of the White House, is also increasing.

Donald Trump and senior members of his administration have blamed Beijing for causing the deaths of hundreds of thousands of people due to the health crisis. The President has threatened to apply new tariffs in retaliation. "  If they [the Chinese] don't buy, we will end the deal." Very simple  ”, launched the American president on Fox News .

► Read also: Coronavirus: Trump does not rule out seeking redress from China

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  • Trade and Exchanges
  • United States
  • China
  • Donald trump
  • Xi Jinping

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