The chief of an American enterprise lobbying group stated Thursday he was assured that China will still meet its “Phase 1” trade agreement commitments to massively increase purchases of U.S. goods and services despite the coronavirus disaster.
Craig Allen, prez of the U.S.-China Business Council (USCBC) said that the enterprise downturn in China could have an effect on the timing of purchases; however, both governments have been dedicated to meeting the targets.
The group represents U.S. firms doing business in and with China.
While China’s promise to increase purchases of U.S. farm products, energy, and services by $200 billion by 2021-end was “aggressive,” he stated the U.S. market was prepared to meet the challenge.
The Chinese city at the epicenter of the virus epidemic reported a much more significant number of infections and deaths under a wider definition Thursday, knocking back world stocks and raising new questions about the extent of the epidemic.
Under the trade agreement, which formally takes effect Saturday, China has promised to increase U.S. items purchases by $77 billion this year and by $123 billion through next year, compared to a baseline of U.S. imports from three years ago, the year before the U.S.-China tariff war started.
A Chinese authorities researcher Tuesday estimate that the coronavirus epidemic may cut China’s 2020 economic development by a full percentage point, stressing the cash flow of firms that will be buying U.S. items.
The USCBC declared Thursday that around 60 of its member firms had been donating medical supplies, along with 2 million face masks, and other items to hospitals in Wuhan.