China has agreed to maintain its end of the deal in Phase 1 of its trade deal, despite the uncertain impact of a virus outbreak on the country’s economy.
Throughout the Phase 1 agreement of the trade deal, the Chinese government agreed to cut tariffs and buy U.S. goods. Despite the Coronavirus outbreak, China intends to keep its end of the bargain by cutting tariffs in half for over 1,700 U.S. goods, including soybeans and crude oil.
On Thursday, China announced it would cut tariffs on some American goods from 10% to 5%, keeping their end of the agreement [Reuters]. This gives the U.S. assurance that China intends to maintain their end of the deal, despite the jolt on the Chinese economy due to the Coronavirus outbreak.