US-China trade review delayed as Beijing lifts farm, oil spending

Signs of Xi Jinping relenting on trade could help US President Donald Trump silence domestic critics. (AFP)
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Updated 16 August 2020

US-China trade review delayed as Beijing lifts farm, oil spending

  • The trade agreement has emerged as a lone source of stability amid strain in the US-China relationship over coronavirus

WASHINGTON: The US and China have delayed a review of their Phase 1 trade deal initially slated for Saturday, sources familiar with the plans told Reuters, citing scheduling conflicts and the need to allow time for more Chinese purchases of US exports.

No new date for the initial six-month compliance review between US Trade Representative Robert Lighthizer, US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He has been agreed, the sources said.

The officials were expected to hold a video conference on Saturday, the six-month anniversary of the trade deal’s Feb. 15 entry into force as the coronavirus pandemic began spreading globally.

One source familiar with the talks said the delay was related to a conference of senior Communist Party leaders at the seaside town of Beidaihe on China’s northeast coast. The postponement did not reflect any substantive problem with the trade deal, the source said, adding: “The new date has not been finalized yet.”

US President Donald Trump on Friday repeated his view that the trade deal was “doing very well,” but did not comment on the delayed meeting. The White House referred queries on the talks to Lighthizer’s office, which did not respond to a Reuters query about plans for the review.

Another source familiar with the plans said that US officials wanted more time to allow China to increase purchases of US goods agreed in the deal, to improve the political optics of the review.

China’s imports of US farm and manufactured goods, energy and services are behind the pace needed to meet a first-year target increase of $77 billion over 2017 purchases.

But as China’s economy has recovered from a coronavirus lockdown earlier this year, purchases have increased. On Friday, the US Department of Agriculture reported the sale of 126,000 tons of soybeans to China, marking the eighth consecutive weekday with large sales to Chinese buyers.

US oil traders, shipbrokers and Chinese importers also said Chinese state-owned oil firms have tentatively booked tankers to carry at least 20 million barrels of US crude for August and September, indicating a ramp-up in energy purchases.

Trump administration officials have signaled that they are satisfied with the pace of purchases in recent weeks and have no plans to abandon the trade deal, which also includes some increased access for US financial services firms in China, strengthened intellectual property protections and removal of some agricultural trade barriers..

Delaying the meeting, even briefly, could allow China to complete more purchases, which would help Lighthizer persuade Trump to stick to the deal.

Signs of Chinese compliance could also help blunt criticism from Democratic presidential candidate Joe Biden, who last week said the agreement that Trump has called a historic win is “failing.”

The trade agreement has emerged as a lone source of stability amid strain in the US-China relationship over coronavirus, human rights crackdowns and sanctions.

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Lebanon plunged into ‘deliberate depression’: World Bank

Updated 01 December 2020

Lebanon plunged into ‘deliberate depression’: World Bank

  • The fall 2020 edition of the Lebanon Economic Monitor predicted the economy will have contracted by 19.2 percent this year
  • Lebanon’s economy started collapsing last year as a result of years of corrupt practices and mismanagement

BEIRUT: Lebanon’s economy is sinking into a “deliberate depression,” the World Bank said Tuesday in a damning report stressing the authorities’ failure to tackle the crisis.
The fall 2020 edition of the Lebanon Economic Monitor predicted the economy will have contracted by 19.2 percent this year and projected a debt-to-GDP ratio of 194 percent next year.
“A year into Lebanon’s severe economic crisis, deliberate lack of effective policy action by authorities has subjected the economy to an arduous and prolonged depression,” a World Bank statement said.
Lebanon’s economy started collapsing last year as a result of years of corrupt practices and mismanagement.
The crisis was made worse by a nationwide wave of anti-government protests that paralyzed the country late last year and the Covid-19 pandemic this year.
The August 4 Beirut port blast, one of the largest non-nuclear explosions in history, brought the country to its knees and further fueled public distrust.
“Lebanon is suffering from a dangerous depletion of resources, including human capital, with brain drain becoming an increasingly desperate option,” the World Bank warned.
In 2020, Lebanon defaulted on its debt, banks imposed capital controls and inflation has reached triple-digit rates, dragging the country into its worst ever economic crisis.
Instead of taking emergency measures to rescue the economy, Lebanon’s political elite has continued to dither and bicker.
The previous government headed by Hassan Diab failed to adopt ambitious policies to tackle the crisis. It resigned under pressure over the blast nearly four months ago and a new cabinet has yet to be formed.
“Lack of political consensus on national priorities severely impedes Lebanon’s ability to implement long-term and visionary development policies,” said Saroj Kumar Jha, World Bank regional director.
He called for the quick formation of a new government capable of implementing short-term emergency measures and addressing long-term structural challenges.
“This is imperative to restore the confidence of the people of Lebanon,” he said.
An annual index compiled by Gallup that tracks people’s experience of stress and sadness said “no other country in the world saw negative experiences skyrocket across the board as much as Lebanon.”
The Negative Experience Index’s data was collected before the Beirut port blast, Lebanon’s worst ever peace time disaster.