Experts tell us how coronavirus will weaken China's position as a global trade partner — and endanger its phase-one deal with the US
Experts tell us how coronavirus will weaken China's position as a global trade partner — and endanger its phase-one deal with the USThe coronavirus is jeopardizing China's ability to meet obligations it agreed to as part of the phase-one trade deal with the US.
Chinese officials could ask the US for leniency in enforcing the deal's timeline, but"we have no idea" how the Trump administration may respond, Lovely noted.The virus has already wreaked havoc throughout China. Its death toll surpassed 360 people as of early Monday, with all but one of the them taking place in the country.on Monday after a multi-day trading halt. That prompted the People's Bank of China to step in with 1.2 trillion yen worth of money-market injections.
The pandemic also hinders any face-to-face meetings between corporate representatives organizing the purchases, according to Lovely. Both countries are limiting travel to prevent the virus from spreading further. While some negotiations can take place remotely, valuable in-person meetings can't take place until the outbreak is under control, she said.
Yet the deal's dispute-settlement chapter calls on both nations to directly consult each other, splitting from the conventional practice of using a third party for such talks. If the United States Trade Representative decides China hasn't upheld its side of the agreement, the US can retaliate and ignite new tensions between the two countries.
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