Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Friday, August 14, 2020 11:17:02 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

US, China to discuss trade deal amid COVID-19 disruption

By
15th-Aug-2020       
Share
  • Twitter
  • Google+
  • Save
  • E-mail
  • Print
Comments
Share your thought
Post a comment »
Read all () »

AFP, Washington :
Negotiators from the United States and China will on Saturday discuss the "phase one" trade deal signed earlier this year - before the coronavirus slammed the world economy and relations between the two economic powers took a turn for the worse.
Washington and Beijing's January deal represented a partial truce in their months-long trade war, and obligated Beijing to import an additional $200 billion in American products over two years, ranging from cars to machinery to oil to farm products.
But purchases of those goods have been lagging, while US President Donald Trump has stepped up rhetoric against China ahead of what's expected to be a tough fight for a second term in the November elections, raising questions about the deal's fate as well as the possibility of a second phase of the truce.
"The outcome of the trade talk will signal if both sides are willing to continue to keep the deal, which will signal whether the relationship will deteriorate further," said Iris Pang, chief economist for greater China at financial services giant ING.
Neither the US nor the Chinese government confirmed the talks to AFP but the deal mandates meetings every six months after it takes effect, which would be Saturday. Even with tensions high and both countries reeling from the shock of COVID-19 - which has caused a historic contraction in global growth and trade - analysts don't expect the talks to produce major changes in the agreement. And if anything does happen, Washington would be the catalyst.
"Until now, China has been relatively passive and the United States has been relatively proactive," said Raymond Yeung, chief economist for greater China at ANZ bank. "In my opinion, there shouldn't be much change coming from China in terms of trade, cooperation or opening up the market, the key still lies in the US side." The comity of the deal's signing in Washington has been overshadowed in recent months as Washington and Beijing have traded barbs over who is to blame for the coronavirus, which first surfaced in China.
Also worsening tensions are China's crackdown on Hong Kong, which Washington has responded to with sanctions, and the Trump administration's order to bar Chinese internet giants TikTok and WeChat from operating in the US.
US Trade Representative Robert Lighthizer in June said China would follow through on its commitments while Washington eyes a second deal, but that same month a Chinese State Council counsellor said the COVID-19 pandemic has had an "impact" on the deal and that relations between the countries are "very unsatisfactory."
The US-based Peterson Institute for International Economics said Chinese agricultural purchases at the end of June were far from where they should be at that point in the year.
They had reached only 39 percent of their semi-annual target, according to US figures, or 48 percent, based on Chinese figures. Beijing "is lagging but it looks like China still wants to commit, despite the escalation of the US-China tensions," said Tommy Xie, head of research on China at OCBC Bank.
Bert Hofman, director of the East Asian Institute in Singapore, said Chinese agricultural purchases may improve later in the year but it will struggle to hit targets for energy products, given low global prices.

However he said language in the agreement would allow both sides to modify the targets in response to a disaster like the coronavirus pandemic, which would be "a good outcome" but could be passed over for political considerations.

"It will be politically hard to change the agreement in the run-up to an election in which President Trump has made containing China a key plank in his re-election campaign," Hofman said. "Rather than amending the agreement, he may prefer to cancel it shortly before the US elections."

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Cash incentive programme fails to reap benefits for ultra-poor


THE Parliamentary Standing Committee on Disaster Management and Relief Ministry expressed concern over the government's cash incentive programme for the rural extreme poor on Wednesday. Following the ninth meeting of the committee on Wednesday, the Chairman of the Standing Committee stated that the poor people were not benefited by the ...

City »

Outgoing Indian High Commissioner to Bangladesh Riva Ganguli Das calls on State Minister for Shipping Khalid Mahmud Chowdhury at his office of the Ministry on Thursday.


.

International »

Lebanese MPs meet for first time since blast, US envoy due in Beirut


Reuters :Lebanese security forces deployed heavily in Beirut on Thursday, stopping protesters from reaching a conference centre where MPs began meeting for the first time since the catastrophic chemicals explosion last week that killed 172 people.Senior US official David Hale is expected in Beirut later on Thursday to stress the ...

Editorial »

Stealing money in chaos is easy but investment needs competent government


MEDIA report in a national daily on Wednesday said Bangladesh Bank's special fund for capital market investment is facing setback because of lukewarm response from banks which were to make the fund available from their money for funding the ailing bourse. The five year special fund of Tk 100 billion ...

City »

Bangladesh United Communist League forms a human chain in front of the Jatiya Press Club on Wednesday to realize its various demands including trial of corrupt people of the Health Sector.


.

Football »

Shakhtar, Sevilla advance into UEFA Europa League semifinal


Agency :Shakhtar Donetsk crushed hapless FC Basel 4-1 following a one-sided affair while Sevilla's Lucas Ocampos left it late to eliminate Wolverhampton Wanderers 1-0 in the UEFA Europa League quarterfinal on Tuesday.Donetsk needed no warmup time and broke the deadlock with just two minutes played as Marlos's corner kick allowed ...

Business & Economy »

Trump candidate for Inter-America bank accuses Argentina of 'obstruction'


AFP, Washington :US President Donald Trump's candidate to head the Inter-American Development Bank said Tuesday he has the backing of the majority of Latin American countries but accused Argentina of trying to "obstruct" his election, with the help of Mexico, Chile and Costa Rica.Mauricio Claver-Carone told a news conference that ...

Editorial »

Mere warning will not do if the corrupt ones remain unabated


MEDIA report said that the government has taken a move to rein in the soaring cost of development projects and the Planning Minister is going to hold a meeting with Secretaries of the Development Ministries and Planning Commission officials to find out ways how to plug corruption and misuse of ...

City »

Devotees of the Hindu community offer prayers on the occasion of Janmashtami. The snap was taken from the city's Swamibag Mandir on Tuesday.


International »

China accused of seeking to turn Taiwan into `the next Hong Kong`


Al Jazeera News :Taiwan faces an increasingly difficult position as China pressures the democratic island to accept conditions that would turn it into the next Hong Kong, its top diplomat told visiting US Health Secretary Alex Azar on Tuesday.Azar arrived in Taiwan on Sunday as the highest-level US official to ...

International »

Turkey says it will license new Mediterranean areas this month


Reuters, Nkara : Turkey will issue seismic exploration and drilling licenses in new areas of the eastern Mediterranean by the end of August and continue its operations in the region, Foreign Minister Mevlut Cavusoglu said on Tuesday, amid tensions with Greece.NATO allies Turkey and Greece are at odds over overlapping claims ...

Business & Economy »

India-Bangladesh ties, connectivity create new trade opportunities: Riva


Indian High Commissioner here Riva Ganguly Das on Tuesday said excellent India-Bangladesh bilateral relations and recent connectivity initiatives in railways and inland waterways created new business opportunities as these reduced trade cost between the two neighbouring countries."With resilient economies and robust business environment, both the countries will not only be ...

Business & Economy »

Emirates launches special portal for trade partners


Business Desk :Emirates has rolled out a brand new, state-of-the-art online gateway to serve its travel trade partners around the world.Tailored for each market, and personalised for each partner to cater to their unique business environment and needs, the Emirates Partners Portal is a one-stop shop for travel industry partners ...

Football »

Dortmund flexing their muscles, Sancho must stay


Borussia Dortmund are flexing their muscles in their efforts to keep England forward Jadon Sancho at the club.In the club's pre-season training-camp in Bad Ragaz, Switzerland, the 2012 German Champions sporting director Michael Zorc announced the surprising news."We plan on having Jadon Sancho in our team this season," Zorc commented. ...

Football »

Ronaldinho set for August 24 release


AFP, Asuncion :Brazil great Ronaldinho could be freed on August 24 following five months detention in Paraguay over a forged passport, judicial sources told AFP on Monday.The former Barcelona, AC Milan and Paris Saint-Germain star was detained alongside his brother Roberto de Assis Moreira on March 6, accused of entering ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news