Amid tensions resurfacing between the US and China on the trade and diplomatic front, a Bloomberg News analysis of data shared by the Commerce Department’s Census Bureau on Tuesday showed that Beijing fell over 33% short of its purchase commitments for goods in the trade deal with Washington.
Key Details
“The dragon nation bought 62.9% of the extra goods that it had promised as part of $200 billion in purchases in the so-called phase one deal in the two years through the end of 2021.”
“Energy was the area where China most missed its targets.”
China “was closest to achieving its targets for agricultural goods, meeting about 83% of its commitments.”
“In manufacturing goods, the nation bought less than 65% of the amount promised.”
China had pledged to buy the extra $200 billion in US agriculture, energy, manufactured goods and services over the 2017 level in the two years through the end of 2021.
Separately, Bob Menendez, the chair of the Senate Foreign Relations Committee said Tuesday, the US should sanction China over its treatment of the Uyghur Muslims.
Key quotes
“It is unconscionable that in the in the 21st century, we have concentration camps anywhere in the world.”
“And what is happening to the Uyghurs -- ethnic Muslims in China -- is outrageous.”
“The Chinese government’s treatment of the Uyghurs in the Xinjiang region “needs the condemnation, not just of the United States, but of the rest of the world and should be sanctioned.”
“Beijing’s treatment of Tibet, Hong Kong, and “threats to Taiwan” are behavior that could be sanctioned.”
Market reaction
Despite the latest signs of discomfort once again between the world’s two largest economies, AUD/USD is sustaining its rebound above 0.7150 while the S&P 500 futures advance 0.17% on the day.
The aussie was last seen trading at 0.7157, up 0.18% so far.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0500 after US inflation data
EUR/USD stays under pressure and trades below 1.0500 in the American session on Wednesday. The US Dollar stays resilient against its rivals after the data showed that the annual CPI inflation edged higher to 2.7% in November, not allowing the pair to stage a rebound.
Gold extends rally above $2,700
Gold preserves its bullish momentum and trades above $2,700 for the first time in two weeks. Investors fully price in a 25 basis points Fed rate cut in December following the November inflation data from the US, boosting XAU/USD.
BTC faces setback from Microsoft’s rejection
Bitcoin price hovers around $98,400 on Wednesday after declining 4.47% since Monday. Microsoft shareholders rejected the proposal to add Bitcoin to the company’s balance sheet on Tuesday.
Why is the ECB set to cut interest rates again and what does that mean Premium
The ECB is widely expected to cut interest rates on Thursday for the fourth time this year. This is a significant achievement as it suggests that the ECB, which sets monetary policy in the Eurozone, is accelerating its path towards lower interest rates after an unprecedented increase.
GBP/USD drops below 1.2750, awaits US inflation data
GBP/USD is back in the red below 1.2750 in European trading on Wednesday. The Pound Sterling loses traction amid renewed US Dollar buying as risk sentiment worsens heading into the key US CPI showdown. The US inflation data is key to gauging the pace of Fed's future rate cuts.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.