China, U.S agree to hold trade talks

Chinese Ministry of Commerce has said that China and the United States have struck an agreement to hold trade talks on the progress of the Phase 1 deal which took effect in February.

Gao Feng, the Ministry spokesperson, made the announcement on Thursday August 20, 2020, at an online weekly briefing following Mark Meadows, White House Chief of Staff’s remark on Tuesday that the talks between the two countries would only center on implementing the Phase 1 deal.

The Chief of Staff also clarified that they were not planning having a new high-level trade talks.

The deal reached on January 15 was a promising one for China that could help boost China’s purchases of U.S. farm and manufactured goods, two years after the two nations had been locked in a bitter trade-related dispute.

More recently, the two countries have seen ties between them worsened especially over coronavirus pandemic and the security law China imposed on Hong Kong.

Meanwhile, President Trump said on Tuesday that, had postponed a review of the August 15 trade pact due to the way China is handling the pandemic.

Contrary to the U.S. struggle to revive its economy, China’s purchases have increased recently as it recovers from its coronavirus lockdown.

However, China has fallen short of its $77 billion first year target on imports of U.S. farm and manufactured goods, energy and services as compared against 2017 purchases, according to some official data.