US-China Phase One Trade Deal Review Postponed: China to Buy More US Crude?
Arslan Butt • 1 min read
According to a recent Reuters report, US and China have decided to postpone a review of the phase one trade deal citing scheduling conflicts as an official reason, and to give China more time to ramp up its purchases of US-made goods. Another report states that China is preparing to hike its imports of US crude oil, which could be a reason behind the delay of the review.
While there has been no official confirmation, this plan was revealed by US traders and shipbrokers as well as Chinese importers, who let on that state-owned oil companies in China could be importing around 20 million barrels of US crude in August and September. According to the terms of the phase one deal, China is expected to increase its purchases of US energy products by $18.5 billion in 2020 alone.
The review of the phase one trade deal was proposed by the Trump administration against the backdrop of heightening tensions between the two countries, even as China failed to increase its imports of US manufactured goods due to the coronavirus pandemic driven slowdown. The six-month review was originally scheduled for last Saturday, but there has been no date fixed for the review for now.
Last Friday, President Donald Trump confirmed that the progress on the interim trade agreement was going well, but he did not announce the delay in the review meeting. Sources stated that the postponement was agreed upon to give China more time to honour its commitments towards increasing imports of US products.