[150820.EN.BIZ] US-China Trade Deal in 'Fine' Shape, White House's Kudlow Says

 

CHINA is continuing to buy US goods, particularly commodities, under its Phase 1 trade deal with the United States, despite rising tensions over Hong Kong and other issues, said top White House economic adviser Larry Kudlow, reports Reuters.

Asked if deteriorating ties between the world's two largest economies on other fronts could result in the trade deal being thrown out the window, Mr Kudlow said, "No, no."

"The one area we are engaging is trade," he told reporters at the White House. "It's fine right now."

American. and Chinese officials are due to meet for a "routine" video conference on Saturday to assess implementation of the Phase 1 agreement six months after the deal defused a trade war that hurt both nations and the global economy.

Mr Kudlow, the director of the White House's National Economic Council, said China was continuing to implement the deal, which called for Beijing to purchase US$77 billion in additional US goods and services this year, and a total of $200 billion in additional purchases over two years.

"The evidence shows they've stepped up substantially" on purchases of US goods, he said, citing what he called "really good numbers," particularly on commodities.

China has increased its purchases of US soybeans recently, but it remains far short of the overall target for 2020. The United States exported just $7.2 billion in agricultural goods to China in the first half of the year, well below the $36.5 billion agreed under the trade deal.

President Donald Trump said his relationship with Chinese President Xi Jinping had soured in the wake of the Covid crisis. President Trump has repeatedly rebuked China for not doing more to contain the virus.

The two countries have also been at odds over Beijing's crackdown in Hong Kong, China's human rights record, and the disputed South China Sea, among other issues.

Source : HKSG / Photo : Market Watch.