China falls short of trade-deal purchase commitments with the US

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.