Source: Washington – France Press
On Monday, the US Treasury Secretary expressed his belief that China will honor its pledges to buy American products under the trade agreement signed in January, threatening Beijing with “very big consequences” if it fails to do so.
“I think they will honor their pledges,” Stephen Mnuchin told Fox Business.
“This agreement has been negotiated for a long time. Chinese President Xi Jinping and American Donald Trump signed it, and I have every reason to believe that the Chinese will honor the agreement,” he added.
The trade agreement concluded in January after a two-year trade war stipulated that China buy additional US goods worth $ 2 billion over the next two years.
But the outbreak of the new Corona virus, which caused global trade to stop.
“If they do not, then there will be very serious consequences in our relations and the global economy, and in the way the world deals with them commercially,” Mnuchin said while tension between the two countries increases.
After a short lull, the tension returned to relations between China and the United States. Washington has accused Beijing of being behind the Covid-19 epidemic and Trump has been waving punitive tariffs again.
Trump has repeatedly attacked China since the outbreak of the Coruna virus. This crisis has severely weakened the US economy, which the president has been counting on for strength in his second-term campaign.
The agreement concluded between the two countries provides for additional purchase in the industrial sector at a value of 77.7 billion dollars, the energy sector with a value of 52.4 billion and agricultural commodities worth 32 billion.
The goal is to rebalance the trade balance between the two countries that record a deficit on the American side.