Consensus Reached on US-China Trade Deal Implementation... Tensions and Caution Remain

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[Asia Economy Beijing=Special Correspondent Sunmi Park] After the trade negotiation representatives of the United States and China reached a consensus on implementing the Phase One trade agreement through a phone call, the overtly hostile atmosphere between the two countries has somewhat eased. However, since debates surrounding the origin of COVID-19 and the fulfillment of the trade agreement have not been completely resolved, a tense standoff between the two nations still remains.

On the 9th, China's state-run Global Times, while refraining from direct criticism of U.S. President Donald Trump and Secretary of State Mike Pompeo, stated through an editorial that "China needs to prepare for continued provocations from the U.S." The editorial argued that the ongoing U.S. attacks on China are part of the Republican Party's election strategy ahead of the polls and that the campaign to hold China accountable is likely to continue even after the election.

It further advised that "China needs to prepare for long-term challenges," emphasizing the strengthening of core science and technology as well as military power, and the enhancement of relations with many countries worldwide, including allies. The editorial also urged that while it is impossible for U.S.-China relations to revert to the past, a Cold War-style confrontation can be avoided, and thus Chinese people should not be easily provoked by U.S. provocations but maintain self-restraint.

The English edition of the Global Times also reported, "The fact that U.S. and Chinese representatives held a phone call and reached a consensus on creating conditions for implementing the Phase One trade agreement shows that the U.S. has realized it needs China to revive its economy, which has been hit hard by COVID-19." Citing experts, it pointed out, "Improving bilateral relations is the fastest way to save the global economy from the impact of the pandemic. Whether the two countries can smoothly implement the trade agreement going forward depends on the U.S.," thereby putting pressure on the U.S.

The U.S. also expressed expectations for the implementation of the trade agreement between the two countries but indirectly pressured China for active compliance, maintaining tension. According to Bloomberg News, the U.S. Trade Representative (USTR) confirmed the phone call between the representatives in a statement and said, "Despite the current global health crisis (COVID-19), both countries fully expect to fulfill their obligations under the agreement (Phase One trade agreement) in a timely manner." The USTR also emphasized, "Both sides agreed that good progress has been made in building the infrastructure necessary to successfully implement the existing agreement."

For the Trump administration, which is facing an election, the implementation of the Phase One trade agreement by China is crucial, so if China does not take corresponding gestures, the possibility of renewed tensions between the two countries remains open.

The U.S. still believes that China mishandled the COVID-19 outbreak, exacerbating the situation, and has not properly fulfilled the promises made in the trade agreement signed in January.

The Hong Kong South China Morning Post (SCMP) analyzed, "In reality, China has not purchased as much U.S. products and services as promised in January," stating, "According to the agreement, China should purchase an additional $76.7 billion worth of specific U.S. products this year, but since the beginning of the year, China's imports of U.S. goods have decreased by 5.9% compared to the same period last year." Citing statistics from China's General Administration of Customs, it explained that China's imports of U.S. products fell by 11.1% in April and by as much as 85.5% in March.

Meanwhile, as tensions between the U.S. and China escalated, trade negotiation representatives from both countries held a phone call the previous day and moved toward creating a consensus to foster an atmosphere conducive to implementing the Phase One trade agreement. According to Xinhua News Agency, Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer, and U.S. Treasury Secretary Steven Mnuchin held a phone call the previous morning, during which both sides discussed strengthening cooperation in macroeconomics and public health sectors to create a favorable atmosphere and conditions for implementing the U.S.-China Phase One trade agreement, aiming for positive effects. They also agreed on the importance of maintaining ongoing communication and consultation.

The phone call between the two trade negotiation representatives was the first dialogue since the signing of the Phase One trade agreement in January this year. At the time of the agreement's conclusion in January, both parties agreed to contact each other every six months to discuss related issues, but with this phone call, the dialogue was held ahead of schedule.

Sources close to the Chinese government advised, "There have been various reasons for the sluggish implementation of the Phase One trade agreement, regardless of whether it was due to China or the U.S.," adding, "During difficult times like these, no country should point fingers or threaten with new tariffs. Such actions will not solve the problems."

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