Trade war: coronavirus unlikely to halt purchase agreements in phase one deal, US business lobby says

US-China Business Council confident that Beijing will meet terms of phase one deal, despite an economic slowdown caused by the coronavirus outbreak

Survey showed that 78 per cent of members viewed the trade deal as positive or somewhat positive, but only 22 per cent would use dispute mechanism

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The US-China Business Council says that the business slowdown in China due to the coronavirus will not stop Beijing fulfilling its purchasing agreements under the phase one deal. Photo: Xinhua

Published: 10:31am, 14 Feb 2020Updated: 11:46am, 14 Feb 2020

The head of an American business lobbying group said on Thursday he was confident that China will still meet its phase one trade deal commitments to massively increase purchases of US goods and services despite the coronavirus crisis.

Craig Allen, president of the US-China Business Council (USCBC), said that the business slowdown in China could affect the timing of purchases, but both governments were committed to meeting the targets. The group represents US companies doing business in and with China.

While China’s commitment to increase purchases of US manufactured goods, farm products, energy and services by $200 billion by the end of 2021 was “aggressive,” he said US industry was ready to meet the challenge.

“The coronavirus doesn’t change any of that, though it might affect the timeline,” Allen told a news conference in Washington.

The Chinese province at the Centre of the virus outbreak reported a much larger number of infections and deaths under a broader definition on Thursday, knocking back global stocks and raising new questions about the extent of the outbreak.