Washington, Beijing reaffirm commitment to Phase 1 trade deal in phone call

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Washington, Beijing reaffirm commitment to Phase 1 trade deal in phone call

Amid conflicting narratives on whether Washington and Beijing could hold on to their “Phase One” trade deal signed off on January 15 that in effect had led to a momentary ceasefire of a nearly two-year long trade dispute between the world’s first- and second-largest economy, top trade officials from the United States and China had reaffirmed their commitment towards the “Phase One” Sino-US trade deal, eventually proffering a financial boost to the global equities on Tuesday and Wednesday.

If truth is to be told, China’s pledge to purchase a $2 billion worth of US-borne agricultural goods as part of their Phase One trade deal appeared to be a far cry at this standpoint given the extent of a sharply deteriorating relationship between the two nations, while a swathe of latest moves from the Trump Administration appeared to be provoking Beijing’s Pro-CCP backed Government to remain reluctant over the Phase 1 trade deal, while a recent remark from the US President Donald Trump that a Phase 2 trade deal might not be in the cards had added to further strains.

On top of that, as the United States and China had pledged to fulfil their obligations under the Phase 1 trade deal, sceptics and traders remained utterly cautious amid concerns that the deal might be on the shaky grounds following United States’ latest move to incline another set of crippling ban on Chinese tech conglomerate Huawei Technologies alongside a removal of trade privileges for the China-controlled island city of Hong Kong after China had inclined a new National Security Law which in effect would enable Chinese intelligences to establish holdings in Hong Kong.

US, China commit to Phase One trade deal as trade tie weakens

In tandem, what could be seen as their first formal trade dialogue since early May when the US President Donald Trump had spurred up trade tensions after repeatedly accusing China’s failure to contain the contagion behind an ongoing global-scale pandemic outbreak, in a telephone call between the US Treasury’s Mnuchin, US Trade Representative Robert Lighthizer and the Chinese Vice Premier Liu He had committed to take necessary steps required to ensure the feasibility of the trade deal.

Meanwhile, following the phone call, citing the dialogue as a regularly scheduled conversation, the USTR’s (United States Trade Representative) office said in a statement, “Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement.

” However, the call was due to take place on Aug. 15. Though, the US President Donald Trump was quoted saying last week that he had cancelled trade talks with China adding “I don’t want to deal with them now”.