The Washington Post
- The US and China have issued an assessment of their Phase One trade agreement, which was initially set for Saturday, Reuters reported.
- Sources familiar with the plans told the news agency that the meeting was postponed due to plans for conflicts and the need to allow China more time to buy US exports in accordance with the trade agreement.
- “Unlike most US-China rhetoric these days, the tone on both sides was refreshingly polite and civilized,” said a senior market analyst at OANDA.
- Data shows that Chinese imports of U.S. farm and manufactured goods, energy and services are lagging behind the pace needed to meet a first-year target increase of $ 77 billion over 2017 purchases, Reuters said.
- Visit the Business Insider website for more stories.
The US and China have returned a review of their Phase One trade agreement that was originally organized for Saturday, according to a Reuters report.
No new date has been agreed for a review of the January deal.
Sources told Reuters that the reason behind the exhibition was conflicting schemes between the two parties and China wanted to give more time to obligations to buy certain quantities of American goods.
A conference for senior leaders of the Chinese Communist Party was scheduled for the same day as U.S. talks, and resulted in the delayed review of the deal, the news agency said.
Apart from that, US officials want China to have more time to increase purchases of US goods in accordance with the agreed deal.
Jeffrey Halley, a senior market analyst at OANDA, described the proposal as giving China “more time to buy more goodies from Americans.”
“Unlike most U.S.-China rhetoric these days, the tone on both sides was refreshingly polite and civilized,” he said.
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Officials from both countries were allowed to hold talks on Saturday, the six-month anniversary of the February 15 signing. The meeting was intended to review the progress of the deal for the first half of the year.
“Given the chaos of the last few months, it has at least prevented things from getting worse,” said Connor Campbell, a financial analyst at SpreadEx.
China is the third largest export market for the US and buys aircraft, machinery, medical supplies, and agricultural products, and much more.
The deal calls for China to increase its purchases of U.S. farms and manufactured goods, energy and services by $ 200 billion over the next two years. All this is on top of the purchases it made in 2017. Data suggest that China is far from achieving this goal.
China’s total imports of products from the US amounted to $ 40.2 billion compared to a prorated year to date totaling $ 86.3 billion. This means that China’s compliance was less than 50%.
However, since the restrictions on coronavirus lockdown have eased, China’s purchases have increased. The U.S. Department of Agriculture reported sales of 126,000 tons of soybeans to China on Friday, the eighth consecutive week of major sales to China.
Officials from President Trump’s administrations have indicated that they are satisfied with the pace of the deal and have no plans to abandon the deal.
The treatment also includes reported some increased access for U.S. financial companies in China, support for intellectual property protection and the elimination of some agricultural trade barriers.
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