An American business lobbying group announced that it is confident that China would push through with its phase one China-US trade deal promises. This includes the increases in purchases of US products and services amid the slowed economic activity in the country.
President of the US-China Business Council (USCBC) Craig Allen announced last Thursday that China was set on timing its purchases of US products and services. Despite the setback, he claimed that both China and the US are committed to meeting the targeted purchases set forth in phase one of the China-US trade deal.
The report claimed that USCBC represents the companies that have engaged in business with China since the deal was set off. China, on the other hand, had committed to increasing its purchases on manufactured goods, agricultural products, energy commodities, and related services from the US.
The said purchases were set at a value of at least 200 billion USD by the end of 2021. The report claimed that the commitment was referred to as an aggressive purchase of these goods and that the US industry is prepared to comply with their end of the bargain.
Allen added that the current problems that China is facing, would not change the level of commitment it had laid out in phase one of the trade deal. He announced during a news conference in Washington that China has ensured the parties concerned that it would observe its commitments by this year as well.
China's economic troubles have caused a decline in global stocks. The adverse effects of these economic setbacks have also been referred to as unforeseeable in the next months of 2020.
According to a Chinese government researcher, the economic setback could cause a significant decline in the country's 2020 economic growth by a full percentage point. It was discussed that this could pressure companies from buying US goods.
The USCBC also announced that 60 of its member companies would be willing to donate medical supplies to China and help the country battle its economic troubles. Insurance company Chubb, retailer Walmart Inc., and FedEx Corp. already donated delivery services to the country.
A survey released last Thursday showed that 78 percent of the members of the USCBC perceive the developments of phase one of the China-US trade deal as somewhat positive while only 12 percent of the members feel that there have been adverse developments in each country's commitments.
Those who viewed the deal as a positive development claimed that the waiver of tariff rates put the countries' trade relationships on a more sustainable trajectory. The adverse voters claimed that it was still too early to manifest progress from the trade deal and that trade actions against China might outweigh its costs.