China/US carry out phase one deal despite complications – Global Times


As the Global Times reports, China and the US  have moved to implement the phase one trade agreement and both sides cut by half some tariffs on tens of thousands of each other's products.

Key notes

In spite of China's commitment to the phase one deal and further negotiations, the novel coronavirus epidemic and US officials' intensifying crackdown on Chinese telecom giant Huawei could cast some uncertainty going forward, Chinese trade experts noted.

In the wake of the epidemic, some in the US have raised questions over China's willingness as well as the ability to fulfill its commitments.  

Many in China have also suggested the use of a disaster-related clause in the phase one deal to start consultations with the US over the purchases.

China continues to combat the outbreak of the coronavirus, which has brought the world's second-largest economy to a near standstill, there have been rising concerns over the implementation of the phase one agreement and negotiations for a phase two deal.

"The epidemic will be too big a problem for the agreement to go into effect and be implemented," Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, told the Global Times on Friday.

Although the epidemic might have "a little" impact on imports from the US, it will not affect the figure both sides have agreed, Gao said. "It will only be a delay rather than a cancellation."

Craig Allen, president of the US-China Business Council, which represents US companies that work with China, also said that the epidemic will not halt China's purchases of US goods and services, according to Reuters.

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

AUD/USD remains under pressure below 0.6100 as markets stay defensive

AUD/USD fails to cheer better than forecast activity numbers from home and China. Globally rising coronavirus cases, extended lockdowns in Europe and grim words from key policymakers favor risk-off. 

AUD/USD News

USD/JPY seesaws around 107.00 amid coronavirus-led risk-off

USD/JPY remains on the back foot amid the early Thursday morning in Asia. The Japanese yen benefits from its safe-haven allure while being the only major to gain versus the US dollar during the current tough time.

USD/JPY News

Gold building a bullish case as COVID-19 reigns

The gold price has lost some bullish support of late as the US dollar moves higher, ending the last quarter on the front foot as a relatively illiquid market sees exaggerated moves adding to the upside support. 

Gold News

WTI pierces $21.00 as US fuels hopes of supply disturbance/control

While extending its recovery moves from the previous day, WTI clears the $21.00 mark, with a high of $21.20, while taking rounds to $21.10 during Thursday’s Asian session. The US leader expects Russia-Saudi Arabia “to work it out.”

Oil News

Dollar Shrugs Off ISM & ADP in Fear of Ugly Jobless Claims

If the first day of April is a taste of what's to come, it will be a very rocky second quarter. After falling more than 24% between January and March, the Dow Jones Industrial Average plunged opened down more than -700 points. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures