cheap air maxcheap air max 95 cheap air max 95cheap nike air max
Welcome to Brilliant Global Logistics Group
cheap air maxcheap air max 95 cheap air max 95cheap nike air max
User ID



China’s purchases of US goods will fall way short of ‘phase one’ trade deal due to the coronavirus, says think tank
American Shipper
Post Date

• The coronavirus pandemic will cause China’s purchase of U.S. goods this year to fall way short of what’s agreed in the “phase one” trade deal, according to a fore by Center for Strategic and International Studies.
• CSIS projected that exports of U.S. goods to China could come in at only $60 billion for the entire 2020 — much lower than the $186.6 billion needed to meet requirements in the agreement.
• U.S. goods exports to China fell by 10% year-over-year in the first quarter of 2020, Scott Kennedy, senior adviser and trustee chair in Chinese business and economics at CSIS, wrote in a Friday report.
• In the phase one trade deal, China agreed to buy an additional $200 billion in U.S. goods and services by 2021 on top of 2017 levels.
That fore was “admittedly” a “worst-case scenario” because Chinese purchases of U.S. goods could rise later in the year as the economy recovers, but any increases still “will not change the overall picture, just the details,” Scott Kennedy, senior advisor and trustee chair in Chinese business and economics at CSIS, wrote in a Friday report.
“The targets were never realistic; they were just gaudy numbers meant to impress. The pandemic made the unrealistic the impossible,” he said.
The coronavirus was first detected in China late last year, and Beijing responded by taking measures that many considered draconian — such as locking down cities, susping public transport and shutting businesses — to contain the outbreak. Those measures led to a plunge in demand for goods and services in China, one of the world’s largest consumer markets.
Consequently, U.S. goods exports to China fell by 10% year over year in the first quarter of 2020, noted Kennedy, citing data from the U.S. Commerce Department. Official U.S. data for services is not yet published, but “it is likely to show a huge falloff due to the collapse of Chinese travel and tourism and the early closing of U.S. universities,” he added.
Several factors were behind the decline in U.S. goods exports to China in the first quarter:
• Energy exports were “perhaps the biggest disappointment” after falling by 33.3%;
• Sales of commercial aircraft were “essentially at zero” and that of automobiles were down by 46.9%;
• Soybean exports were lower by 39.4%;
• U.S. failing to take advantage of China’s “sky-high” demand for pork following a swine fever outbreak that caused a shortage of the staple meat. But the coronavirus caused many American meat-processing plants to halt production.
In the phase one trade deal, China agreed to buy an additional $200 billion in U.S. goods and services by 2021 on top of 2017 levels. That means that U.S. goods and services exports to China should climb to around $290 billion in 2020 and $330 billion in 2021, according to the agreement released by the U.S. Trade Representative.
Options for Trump
Relations between the U.S. and China have worsened in recent weeks, with Washington and Beijing disputing over a variety of issues, including the origin of the coronavirus.
Renewed tensions between the two economic powerhouses raised questions about the status of the phase one trade agreement, which investors and analysts considered a sort of truce in a U.S.-China trade war that started two years ago.
Top officials from both countries spoke over the phone last week and agreed to stay on course with regards to the trade deal, but U.S. President Donald Trump said on Friday he was “very torn” about whether to the agreement.
CSIS’ Kennedy outlined in the report three options that the Trump administration can take to address China’s “poor performance” in fulfilling the trade deal:
1. Go through a multistage resolution process as outlined in the deal, which involves renegotiating targets and, failing which, applying “remedial” measures such as additional tariffs;
2. Slap penalties on China and possibly even withdrawing from the deal entirely;
3. Recognize that the pandemic has hampered China’s ability to buy more U.S. goods and that Chinese imports will rise as its economy restarts.
Each of those options has its own advantages and disadvantages, wrote Kennedy. The first two options could prompt protest and retaliation from China, while the third is “the most politically risky approach” for Trump, he added.
“There is a fourth option, but it is not one the administration will choose: Admit that the purchases component of the deal was a mistake to with and reconsider their entire approach to China,” he said.

Post Date
Its Not Too Late to File for China Tariff Refunds on .. American Shipper 09/29/2020
NVOs gain trans-Pacific share as COVID-19 disrupts de.. American Shipper 09/28/2020
Warehouses holding onto chassis, prolonging LA-LB por.. American Shipper 09/28/2020
What products are US consumers buying? .. American Shipper 09/28/2020
Retail logistics processes could replace physical sto.. American Shipper 09/28/2020
FMC to investigate carriers’ runaway rates success.. American Shipper 09/25/2020
Update on Transpacific West Coast peak season for Nor.. American Shipper 09/25/2020
AD/CV News: Glass Containers, PC Strand, PET Film, Ki.. American Shipper 09/25/2020
Walmart sellers invited to try for credit.. American Shipper 09/25/2020
Restricting container capacity management comes with .. American Shipper 09/21/2020
Page : 1   2   3   4   5        [Next 5 Page]  Last Page : 164 ( 1 of 164  Total Pages )




cheap air max 97cheap air max 90 cheap nike air maxcheap air max
Brilliant Group Logistics INC.
159 N. Central Ave. Valley stream, NY 11580
Tel : (516) 599-2406 Fax : (516) 599-0528