No mater what you have heard, China is buying US goods as required.
China is continuing to buy US goods, particularly commodities, under its Phase 1 trade deal with the United States, despite rising tensions over Hong Kong and other issues, White House economic adviser Larry Kudlow said Tuesday.
Asked if deteriorating ties between the world’s two largest economies on other fronts could result in the trade deal being thrown out the window, Mr. Kudlow said, “No.“
“The 1 area we are engaging is trade,” he told reporters at the White House. “It is fine now.“
Top US and Chinese officials are due to meet for a “routine” video conference Saturday to assess implementation of the Phase 1 agreement 6 months after the deal defused a trade dispute that hurt both nations and the global economy.
Mr. Kudlow said China is continuing to implement the deal, which called for Beijing to purchase $77-B in additional US goods and services this year, and a total of $200-B in additional purchases over 2 yrs.
“The evidence shows … they have stepped up substantially” on purchases of US goods, Mr. Kudlow said, citing what he called “really good numbers,” particularly on commodities.
China has increased its purchases of US soybean recently, but it remains far short of the overall target for Y 2020. The United States exported just $7.274-B in agricultural goods to China in 1-H of this year, well below the $36.5-B agreed under the trade deal.
Tuesday, President Trump said his relationship with Chinese President Xi Jinping soured in the wake of the C-19 coronavirus chaos. President Trump has repeatedly hammered China for not doing more to contain the virus.
The 2 countries are at odds over Beijing’s crackdown in Hong Kong, China’s human rights record, and the disputed South China Sea, among other issues.
Have a healthy day, Keep the Faith!