August 12, 2020

White House economic advisor says US-China trade deal in good shape

Larry Kudlow, top White House economic advisor said China is still on track to buy more United States agricultural goods in line with its US-China Phase 1 trade deal pledge, despite rising political tensions between both countries, Reuters reported.

Kudlow told reporters that the US is continually engaging with China on trade when asked by reporters if worsening ties between both countries would scupper the deal.

US and Chinese officials are scheduled to meet for a video conference on August 15 regarding the US-China Phase 1 trade agreement. The deal, which was signed earlier this year, defused a trade war that affected not only both countries but the world economy.

Kudlow, who is the White House's National Economic Council director, said China has continuously purchased more US agricultural goods. As part of its pledge, China said it will buy US$77 billion in additional US goods and services in 2020, with a total ofUS$200 billion in additional purchases over the next two years.

China had purchased additional US soybeans, but it is still far from its target this year. Between January to June 2020, the US exported US$7.274 billion in agriculture foods to China, lower than the agreed US$36.5 billion under the Phase 1 deal. 

-      Reuters