COVID-19 Emerges as a Variable in US-China Trade Agreement Implementation

[Asia Economy Beijing=Special Correspondent Park Sun-mi] The spread of COVID-19 is becoming a new variable in the implementation of the US-China Phase One trade agreement signed three weeks ago.

Wang Tao, Chief Economist at investment bank UBS, stated on the 12th through the Global Times, "The United States may unofficially lower the quota for purchasing American products from China slightly, considering the COVID-19 outbreak situation in China." He added, "Since China is inevitably suffering economic damage due to the spread of COVID-19, it is difficult to increase purchases of American products as stipulated in the Phase One trade agreement."

Wei Jianguo, former Vice Minister of the Ministry of Commerce of China, also said, "Before China takes any action, the United States should show understanding considering China's difficult current situation," and added, "Of course, China values trade transactions and is doing its best to implement the agreement as agreed."

A senior White House official also assessed that the spread of COVID-19 could affect China's purchase of American products.

Robert O'Brien, White House National Security Advisor, attended an event hosted by the think tank Atlantic Council on the 11th (local time) and explained, "It is expected that China will purchase more American agricultural products under the Phase One trade agreement, but due to the outbreak of COVID-19, there may be an impact on the scale of China's purchases of American agricultural products at least for this year."

According to the US-China Phase One trade agreement signed three weeks ago, China promised to additionally purchase $200 billion (approximately 237 trillion KRW) worth of American products in sectors such as manufactured goods, agricultural products, energy, and services over the next two years.

This content was produced with the assistance of AI translation services.