Global Times "Growing Calls to Reassess Phase 1 Trade Agreement in China"

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Although the US-China trade negotiation teams reached a consensus last week via a phone call to foster an atmosphere for implementing the Phase One trade agreement, voices calling for a review of the trade agreement are growing louder within China.

On the 12th, the state-run Global Times reported that hawkish officials within China are moving toward seeking new trade negotiations with the United States.

It was reported that some officials are calling for a review of the Phase One trade agreement signed in January this year and for new trade negotiations to be conducted. This implies that China may nullify the Phase One trade agreement and propose a new negotiation plan by adjusting the terms in a direction more favorable to China. Although the Global Times is not an official organ of the Chinese Communist Party, it is affiliated with the People's Daily, the party's official newspaper, and occasionally reflects the views of the Chinese government.

According to the Phase One trade agreement, China is required to purchase an additional minimum of $200 billion worth of US goods and services over two years. The US agreed to gradually remove tariffs imposed on Chinese goods.

The newspaper stated that the calls within China to nullify the trade agreement are largely influenced by the US attacks blaming China for the spread of COVID-19 and asserting that China is the origin of the virus. An internal official explained, "The malicious attacks by the US have provoked a 'tsunami of anger' among Chinese officials." He added, "China made compromises to conclude the Phase One trade agreement, but (under the current circumstances) suspending the Phase One trade agreement would be more advantageous for China."

Another official said, "The US is facing an election and economic downturn, so if trade negotiations return to square one, it will not have the luxury to restart the trade war." He added, "Since the Phase One trade agreement, the US has strengthened crackdowns on China in various fields such as technology, politics, and military. If China now takes a step back on trade issues, the US will fall into a trap."

Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, who has served as an advisor to the Chinese government on trade issues, said, "China has well prepared countermeasures against the US's conventional threats following past confrontations with the US," and added, "Even if the trade war restarts, China knows how to respond and will retaliate swiftly, causing serious harm to the US economy."

Of course, some believe that while China may consider suspending the implementation of the trade agreement, this is likely to be a 'last resort' that would only emerge in China's worst-case scenario. Meanwhile, the Global Times noted that China has shown sincerity in implementing the Phase One trade agreement, reporting that as of May 2, China imported 402,000 tons of US pork, the largest import volume in the past six months, and also purchased some soybeans, cotton, sorghum, and beef.

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