The President of the United States Donald Trump has revealed a possibility about the decoupling of the US economy from the Chinese business.
China is a major buyer for US goods, however, United States President Donald Trump; in an interview said that “We do not need to do business with China.”
Donald Trump said, Well it’s something that if they don’t treat us right I would certainly, I would certainly do that.”
In June U.S. Treasury Secretary Steven Mnuchin said a decoupling of the U.S. and Chinese economies will result if U.S. companies are not allowed to compete on a fair and level basis in China’s economy.
Looking at the facts, as part of a trade agreement that took effect Feb. 14, China pledged to buy goods worth $200 billion from U.S. suppliers above 2017 levels.
The purchase targets are not monthly or quarterly. The first one covers all of 2020. China committed to purchase about $64 billion above 2017 levels for the year.
However, amid the coronavirus pandemic, U.S. exports to China have been declining this year. The trade agreement uses official customs data for its targets.
American Market experts are of the view that China is falling short in agriculture and falling far short in energy, manufacturing, and services. “China was supposed to buy a lot more relative to 2017, so it is clearly not meeting the commitments.
It should be noted that in the first half of the year, Beijing imported $40.2 billion in products covered by the trade deal, less than one-quarter of its total 2020 purchase commitment.