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China a bright spot for US in gloomy global trade picture
China waging campaign against decoupling: Gordon Chang
Gatestone Institute senior fellow Gordon Chang discusses decoupling with China and points to the massive role American consumers play in its economy.
China has retaken its mantle as America’s largest trading partner, emerging as a rare bright spot for U.S. farmers and other exporters as the coronavirus pandemic constrains global commerce.
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Trade between the two nations rose to $39.7 billion in April, up nearly 43% from the month before, and enough to once again surpass Mexico and Canada. The jump followed the signing of a trade pact in January in which China agreed to sharply step up purchases of U.S. farm products and other goods.
U.S.-China trade remains well below the record $61.4 billion set in October 2018, and economic fallout of the coronavirus pandemic has cast doubt on China’s ability to meet ambitious purchase targets set in the trade accord. China is nonetheless the only major world economy likely to post positive growth this year, according to a recent World Bank forecast.
“China looks like it could be the biggest engine of global GDP growth in 2020 and maybe 2021,” said Craig Allen, the president of the U.S.-China Business Council. “We want American companies to benefit from that absolutely.”
CHINA WILL HONOR TRADE DEAL, WANTS BETTER US TIES
Despite the rise, China is so far not on pace to meet purchase terms under the trade pact, which specifies that it increase purchases of U.S. goods and services by $200 billion over 2017 levels over a two-year period.