US, China reaffirm commitment to implement phase-one deal
Beijing, China - US President Donald Trump and Chinese President Xi Jinping reaffirmed their commitment to implementing the phase-one trade deal signed between the two countries last month.
The two presidents ‘agreed to continue extensive communication and cooperation between both sides,’ the White House said in a readout of the leaders’ call on Friday. ‘They also noted the great achievement of the recent US – China Phase One Trade Deal and reaffirmed their commitment to its implementation,’ it said.
Trump expressed ‘confidence in China’s strength and resilience in confronting the challenge of the 2019 Novel Coronavirus outbreak’, the White House said.
China said on Thursday it would halve tariffs on US$75bn worth of US imports as part of its trade truce with Washington and as officials look to calm markets unnerved by the deadly virus outbreak.
China's State Council Tariff Commission announced the reductions after Beijing and Washington signed an initial deal last month to dial down a long-running trade war that has hit the global economy. China will cut levies of five and 10 per cent on more than 1,700 items starting February 14, the same day Washington is expected to halve tariffs on US$120bn worth of Chinese goods.
However, the virus outbreak has raised concerns that China might not be able to make the purchases it promised and fulfil the terms of the deal.
Earlier this week, Bloomberg reported that Chinese officials were hoping the US will agree to some flexibility on the pledges in the deal, people familiar with the situation said, though it is unclear if such a request has been formally raised.
The phase-one deal is beneficial to China, the US and the world’s peace and prosperity, Xi was cited as saying in a separate report by China’s state-run Xinhua News Agency. China hopes the US can work in concert with
China to implement the consensus, and promote bilateral ties to develop on the right track this year, Xi said.
Xi also hoped the US would ‘calmly evaluate the epidemic, and reasonably respond’. The two sides should keep in contact and work together to contain the disease, he said.
“China has taken the most comprehensive and strict measures to prevent and control the epidemic,” Xi was quoted as saying. “There has been some progress. China is fully confident and capable of winning the battle against the epidemic. The longterm trend for China’s stable economic development has not changed,” he added.
The two economic powers in January signed a ‘phase one’ deal that eased tensions in their bruising trade war, with Beijing agreeing to buy an additional US$200bn in US goods over the next two years.
As part of the phase one deal, the US said it would halve its tariffs on US$120bn of Chinese goods to 7.5 per cent, while Trump called off additional levies that would have taken effect last December.
The announcement comes as China grapples with a shortage of resources as it struggles to combat the coronavirus, which has claimed around 722 lives and infected more than 35,000.
The coronavirus outbreak in China will dent the economy but will not keep the country from buying US goods as part of the ‘phase one’ trade deal signed last month, US Treasury Secretary Steven Mnuchin said on Thursday.