China’s agreement to buy US products becomes key to saving trade deal
- Covid-19 outbreak has increased the importance of implementing this aspect of the interim agreement, according to sources on both sides
- Senior officials have promised to work to save the deal after Donald Trump threatened to walk away unless China sticks to its commitments
The Covid-19 pandemic has increased the importance of implementing China’s agreement to buy US$200 billion of US goods – a key aspect of the interim trade deal between the two sides, sources familiar with the talks have said.
US President Donald Trump has threatened to withdraw from the agreement if China fails to live up to its commitment over the next two years.
In a phone conversation between the lead negotiators on Friday, Chinese Vice-Premier Liu He and US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin vowed to “create favourable conditions to implement the phase one trade deal”.
An American source who is familiar with recent discussions said US trade officials acknowledged that China was largely delivering its pledges on structural issues such as opening market access and improving intellectual property protection.
Both sides have yet to reach agreement on some details, such as a delayed and vaguely worded IP action plan and easing equity caps for foreign investors, but those disagreements are not serious enough to undermine the deal, said the source, who spoke on condition of anonymity.