The White House’s top economic adviser Larry Kudlow says the U.S. and China trade deal is in “fine shape.”
He notes that China is continuing to buy U.S. goods, particularly commodities, under the Phase One trade deal with the U.S.
Reuters says the purchases are happening despite tensions over Hong Kong and other issues between the two nations. Kudlow denied that deteriorating ties between the two countries on other issues would lead to the trade deal being scrapped.
“The one area we are engaged in is trade,” he said to reporters at the White House. “It’s fine right now.”
Top U.S. and Chinese officials will meet for a “routine” video conference on Saturday to assess the implementation of the Phase One agreement six months into its existence.
The deal diffused a trade war that impacted both of the nations as well as the global economy.
“The evidence shows they’ve stepped up purchases substantially,” said Kudlow.
Despite what Kudlow says are “really good numbers,” China remains far short of its overall purchasing target for 2020.
The U.S. exported $7.2 billion in agricultural goods to China in the first half of 2020, far below the $36.5 billion they agreed to under the trade deal.