US Treasury Secretary Steven Mnuchin said Monday he expects China to uphold a trade deal reached with Washington this year, and warned of "consequences" if the country did not.

The comments come amid a sharp drop in global trade caused by the coronavirus pandemic as well as a dispute between the two powers over fault for the spread of the virus, which first broke out in Wuhan, China.

The US and China in January signed an agreement to end a nearly two year-long trade war, that included a commitment by Beijing to buy an additional $200 billion in American goods over the next two years.

"I'm expecting them to meet their obligations," Mnuchin said on Fox Business Network.

"I have every reason to expect that they honor this agreement and if they don't, there would be very significant consequences in the relationship and in the global economy as to how people would do business with them."

However, relations between Washington and Beijing have soured in recent weeks, with US President Donald Trump blaming China for the pandemic, and threatening tariffs.

The US has been hit with tens of millions of layoffs as the virus has spread, significantly weakening the previously solid economy, which Trump was counting on to win re-election in November.

The trade agreement signed in January includes $77.7 billion in additional purchases from the manufacturing sector, $52.4 billion from the energy sector and $32 billion in agricultural products.

The US currently runs a trade deficit with China, and the objective is to realign the trade balance between the two countries.

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The Space Media Network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceMediaNetwork Contributor $5 Billed Once credit card or paypal		SpaceMediaNetwork Monthly Supporter $5 Billed Monthly paypal only

EU, China and others kick off workaround for stalled WTO appeals body
Geneva (AFP) April 30, 2020
The European Union, China and 18 other countries and territories on Thursday launched a temporary system for appealing trade dispute rulings after the US-provoked collapse of the WTO appeals body. The participants in the arrangement formally notified the World Trade Organization Thursday that the temporary appeals mechanism had entered into force. The "interim appeal arrangement for WTO disputes becomes effective," the European Commission said in a statement. The multi-party interim appeal a ... read more