Coronavirus threatens to blow up trade deal between US and China
Coronavirus threatens to blow up trade deal between US and China

The coronavirus epidemic can have a direct impact on the trade deal between China and the US. The reaction of the White House is still not clear. However, the outbreak can prevent China from fulfilling its obligations under phase one deal between the two countries. This is particularly true for China’s promise to increase US agricultural purchases. “We expect the phase one deal will allow China to import more food and open those markets to American farmers, but certainly as we watch this coronavirus outbreak unfold in China it could have an impact on how big, at least in this current year, the purchases are," said Robert O'Brien, the US National Security Advisor. Moreover, China maintains a key role in the global supply chain which has been already disrupted by the infection. Nowadays, it is difficult to assess the full financial impact of the coronavirus epidemic but it will definitely leave its mark on the global economy.

Published: 2020-02-19 11:12:03 UTC
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