China, US trade truce still on track as ties fray

BEIJING — At a time when worsening relations between the United States and China are adding even more uncertainty to the global economic and political outlook, the two countries are trying to reassure the world that the truce in their nearly two-year trade war remains intact.

The two countries said Friday — Thursday night, Washington time — that their top trade and financial officials had held talks via conference call, their first since the coronavirus pandemic ballooned in late January. Although President Donald Trump had suggested this week that the White House would take a skeptical look at whether China was living up to its commitments under the truce, the two countries signaled that their agreement was on track.

“Both sides agreed that good progress is being made on creating the governmental infrastructures necessary to make the agreement a success,” the Office of the U.S. Trade Representative said in a statement. “They also agreed that in spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner.”

On issues ranging from the disputed origins of the pandemic to Beijing’s policies toward Hong Kong, Taiwan and the South China Sea, relations between China and the United States have deteriorated to their worst point in years. But current and former trade officials predict that the agreement will survive.

The Phase 1 agreement keeps 25% tariffs in place on a wide range of imports from China. It requires China to strengthen intellectual property protection and open its markets to foreign financial services companies.

It also says China will boost its imports from the U.S. by $200 billion this year and next year, compared to levels in 2017.