US and China hold phone call to discuss phase one trade deal

US Treasure Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer spoke to Chinese Vice Premier Liu He on Thursday and discussed the ongoing tensions between both superpowers.

The official discussed matters concerning the economy and public health, including the “phase one” trade deal that both signed in January, according to CNBC.

The call came as tensions between both sides were increasing once again, mainly due to President Donald Trump’s accusations that China was to blame for the coronavirus outbreak.

The coronavirus pandemic also raised questions about whether China could fulfill its obligations in the phase one deal, which include purchasing an additional $200 billion of US goods over two years.

Donald Trump recently threatened he would “terminate” the agreement if Beijing failed to meet those obligations.

“Both sides agreed that good progress is being made on creating the governmental infrastructures necessary to make the agreement a success. They also agreed that in spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner,” USTR and the Treasury said in a joint statement on Thursday.

China’s ministry of commerce said the two sides on Thursday agreed to strengthen co-operation over macroeconomic and public health matters, and to “strive to create a favourable atmosphere and conditions for the implementation of the first phase of the China-US economic and trade agreement”.