Can China still meet trade deal targets amid virus outbreak?

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China Reaffirms Commitment to Phase 1 Trade Deal Targets Amidst Coronavirus Outbreak

China has announced it will grant exemptions on retaliatory duties for 696 US goods, a move that aims to support its commitment to the Phase 1 trade deal. Despite concerns arising from the coronavirus epidemic, a White House adviser has indicated that China's President Xi Jinping has assured US President Donald Trump that the purchasing targets will still be met.
Exemptions on US Goods to Facilitate Purchases

The newly announced tariff exemptions cover a substantial list of 696 US goods, marking the most significant tariff relief provided to date. This action is intended to help China fulfill its obligations under the Phase 1 trade agreement, which took effect on February 14. The eligible US products include key agricultural and energy items such as pork, beef, soybeans, liquefied natural gas, and crude oil.
Impact of Coronavirus on Trade Deal Fulfillment

The ongoing coronavirus epidemic has introduced significant challenges to China's ability to achieve the agreed-upon purchasing targets. Containment measures, including travel and transportation restrictions, have led to factory shutdowns or reduced operations, impacting production capabilities. Furthermore, public health directives discouraging gatherings have also affected consumption levels across the country.
Assurances of Continued Commitment

Despite the disruptions caused by the epidemic, there have been explicit assurances regarding China's intention to meet its trade deal obligations. White House adviser Larry Kudlow relayed that Chinese President Xi Jinping communicated directly to US President Donald Trump that China remains committed to its Phase 1 trade deal purchasing targets.
Application Process for Exemptions

Chinese firms will be able to apply for these tariff exemptions based on prevailing market conditions and commercial considerations. Applications will be accepted starting March 2, with any granted exemptions remaining valid for one year. The list of goods eligible for exemption from additional tariffs also includes items like denatured ethanol, wheat, corn, sorghum, certain medical devices, metals such as copper ore and concentrates, copper scrap, and aluminium scrap, along with pharmaceutical products like recombinant human insulin and some antibiotics.

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Can China still meet trade deal targets amid virus outbreak?

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