Chinese officials are hoping the U.S. will agree to some flexibility on pledges in their phase-one trade deal, people familiar with the situation said, as Beijing tries to contain a health crisis that threatens to slow domestic growth with repercussions around the world.
The agreement sealed Jan. 15 is supposed to take effect in mid-February. It has a clause that states the U.S. and China will consult “in the event that a natural disaster or other unforeseeable event†delays either from complying with the agreement. It’s unclear whether China has formally requested such a consultation yet, but the people familiar with the matter said the plan is to ask for it at some point.
The Chinese Commerce Ministry and U.S. Trade Representative didn’t immediately respond to a request for comment.
In the first year of the deal, China committed to buy an extra $76.7 billion of American goods beyond what it did in 2017, and an additional $123.3 billion in the second year. Purchases of agricultural products are particularly important for the livelihoods of American farmers who’ve been hurt in an escalating tariff war with China over the past two years and are a key base of support for President Donald Trump.
https://www.bloomberg.com/news/articles/2020-02-03/china-seeks-u-s-flexibility-on-trade-targets-as-virus-spreads
Ink is barely dry and China is thinking on reneging on deal already.
China had to have known about the virus when it was negotiating deal, yet now claims it needs to not implement its obligation within agreement.
