China's promises in its phase one trade deal to increase purchases from the United States - which experts already called "unrealistic" - will be even more difficult to meet now that the coronavirus is affecting demand and interfering with supply chainsIn the first year of the deal, which takes effect in mid-February, China has pledged to buy an additional $76.700 billion in U.S. goods on top of what it bought in 2017, and an additional $123.300 billion in the second year.
But as the new coronavirus spreads, The focus is on Article 7.6 of the agreement, which states that the U.S. and China will consult “in the event that a natural disaster or other unforeseeable event” delays either country’s compliance with the agreement.Obviously it will have some repercussions throughout the economy, which we hope will not inhibit the purchasing objective we have for this year.", said US Agriculture Secretary Sonny Perdue on Wednesday (29.01.2020).
"We'll have to wait and see what happens. But the honest answer is that we don't know yet. But we expect a very quick conclusion," he added. As the economic disruption caused by the coronavirus becomes increasingly clear, Economists raise their estimates of the impact on the growth of the Asian giant and the worldNomura International Ltd. notes that the impact could exceed that of the 2003 SARS outbreak.
So far, however, the world's two largest economies appear to be more focused on finding measures to prevent the spread of the disease.The U.S. and China are in close coordination around the coronavirus and the protection of public health in both countries"White House spokesman Judd Deere said. "The president appreciates President Xi's cooperation," he concluded.
Fountain. Bloomberg
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