Deutsche Welle Chinese Edition recently reported that China may delay the schedule for purchasing U.S. goods as agreed in the recent U.S.-China Trade Agreement (Phase One). According to the agreement, the promise of acquiring U.S. goods starts to take effect on February 15. However, with the spread of the coronavirus outbreak in China, Chinese authorities effectively closed down a large number of factories and even entire cities in response to the disease. Larry Kudlow, Whitehouse Director of the National Economic Council, confirmed this potential delay on Tuesday, February 4. Based on estimates, China is expected to purchase US$76 billion additional U.S. goods in the first year of the Agreement schedule and a US$123 billion additional purchase is scheduled for year two. The agreement does not have clear details on how to resolve issues caused by a reasonable delay. So far, the coronavirus has caused widespread delays for Chinese manufacturers to be able to reopen their factories after the Chinese New Year.
Source: DW Chinese, February 5, 2020
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