President Donald Trump announces ‘phase one’ trade deal with China
Trump Calms Markets After Navarro Announces Trade Deal With China
In China, one of the key employees of the US presidential administration was called a liar.
American President Donald Trump tweeted that the U.S.-China trade deal is «fully operational» after statements Peter Navarro on Monday they stirred up the futures market.
Navarro, the head of trade and industrial policy for the Trump administration, told FOX News that U.S.-China relations have deteriorated sharply since the two countries signed the first phase of the trade deal on January 15..
Navarro stated that «a turning point» came when the US learned about the spread of the coronavirus only after the Chinese delegation left Washington. Delegation, which included the Vice Premier of China Liu He, was in Washington DC to sign the first phase of the trade deal.
«Everything is over», – stressed Navarro.
After that, Navarro had to explain that between the two countries «ended trust», not a trade deal.
«My comments were ugly taken out of context. They had nothing to do with the first phase of the trade agreement, which is ongoing, Navarro said. – I was just talking about the lack of trust in the Chinese Communist Party when they lied about the Chinese origin of the virus and plunged the world into a pandemic».
Formerly Minister of Finance Stephen Mnuchin stated that the presidential administration has «opportunities», to hold China accountable for the coronavirus.
«It is unacceptable that China has not confessed, has not been frank about what is happening with this disease. And there is no doubt that the disease started there, ”Mnuchin said. – How did it spread throughout the world, and not spread to China? Here’s what we want to know».
China on Tuesday reacted with disdain to Navarro’s claims over trade deal.
«He constantly lies, there is no trust in him», – said a spokesman for the Chinese Foreign Ministry Zhao Lijian at the regular press briefing.
On the trade deal, Zhao said: «China’s position on this issue was consistent and clear».
Financial markets were volatile, with futures on US stocks and risk-sensitive currencies slipping into negative territory. Since then, they have regained most of the lost ground after Navarro refuted the interpretation of their own statements..
On January 15, Chinese Vice Premier Liu He and President Donald Trump signed the first phase of the U.S.-China trade and economic agreement in Washington, D.C. There were no warnings about the severity of the coronavirus at the time, Navarro said..
Only five days after the signing of the deal, the President of China Xi Jinping finally issued a statement on the coronavirus, stating on January 20 that his country «decisively curb the spread of the epidemic».
President Trump made it clear that he now has «completely different» thoughts on trade deal following the coronavirus pandemic.
«Now I feel completely different about this deal than I did three months ago. Let’s see what happens, ”Trump said in May. “It was very exciting, one of the biggest deals ever made. But as soon as the virus began to spread, I asked myself – how did they allow it??».
USA Sales Representative Robert Lighthizer, a key negotiator on a trade deal with Beijing said earlier this month that he «very good» refers to this transaction and that «China has done a pretty good job» in some structural changes.
«We expected tensions between the U.S. and China to escalate in the second half of this year ahead of the U.S. elections», – said Vasu Menon, Senior Investment Strategist, OCBC Bank Wealth Management in Singapore. – Chinese hawks … like Navarro, can take over and take the (Trump’s) case to take action against China. So expect markets to be highly volatile in the second half of this year, under double pressure from COVID-19 and US-China tensions.».