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U.S.-China

How Will COVID-19 Affect Phase-1 Deal Execution?

While the COVID-19 outbreak is drawing all the attention in the market, the phase-1 trade deal between China and the U.S. officially went into effect on 14 February. China was on track to fulfill its commitments, mostly related to regulatory reforms. But it is impossible for Beijing to deliver the total purchase volume for 2020 thanks to the U.S. travel ban as well as shrinking Chinese demand.

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Phase-one Deal and Beyond

For the United States, the major gain is China’s commitment to purchase more American goods. Based on the agreement, the annual export of goods and services from the US to China should increase to $263bn in 2020 and $310bn in 2021, and 80% of the increase would come from goods.

For the United States, the major gain is China’s commitment to purchase more American goods. Based on the agreement, the annual export of goods and services from the US to China should increase to $263bn in 2020 and $310bn in 2021, and 80% of the increase would come from goods.

Continue Reading