China and the U.S. have achieved progress in the implementation of their phase one trade deal, despite delays in certain imports due to technical and supply issues on the U.S. side due to Covid-19, the Global Times reports. The U.S. Chamber of Commerce and over 40 trade associations urged top Chinese and U.S. officials, including Chinese Vice Premier Liu He, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer to redouble efforts to implement the phase one trade agreement. In a letter, the groups urged a significant increase in China’s purchases of U.S. goods and services, noting that combating the coronavirus pandemic and restoring global growth partially depend upon the successful implementation of the trade deal.

Supplies may be held up due to epidemic prevention measures. In late June, China’s customs administration announced that it had suspended imports of poultry products from a plant owned by U.S.-based meat processing firm Tyson over a cluster of Covid-19 cases. Data compiled by news website marketwatch.com shows that as of May, China’s energy purchases only amountto 18% of the annual target. U.S. exports data show that China has purchased USD2 billion in energy products from the U.S. as of May.

Under the phase one trade deal signed in January, Beijing pledged to buy at least USD200 billion in additional U.S. goods and services over two years, while Washington agreed to roll back tariffs on Chinese goods in stages. Implementation of U.S. sanctions due to alleged human rights violations in Tibet and Xinjiang and restrictions of freedom in Hong Kong may have a negative impact on the trade deal.

China-U.S. relations, “one of the most consequential bilateral relationships in the world,” are faced with “the most severe challenge since the establishment of diplomatic ties,” Chinese State Councilor and Foreign Minister Wang Yi warned at the China-U.S. Think Tanks Media Online Forum last week. Former U.S. Secretary of State Henry Kissinger also attended the forum. From the trade war and competition in the field of high-tech, such as 5G, to military tensions in the South China Sea and the Taiwan problem, as well as the war of words on the Covid-19 pandemic, the two countries have been competing and struggling in almost every aspect in recent years.

As the U.S.-China trade war has now been ongoing for two years – the U.S. first raised tariffs on July 6, 2018 – U.S. Trade Representative Robert Lighthizer said he didn’t know what the end goal was. “That’s a damning admission and confirms the suspicion of many that the Trump administration’s trade policy is all tactics and no strategy,” said Scott Kennedy, China Business Chair at the Center for Strategic and International Studies. “Unilateral across-the-board tariffs got China to the negotiating table. But because they were not done in concert with anyone else or together with other policies, the results were rather meagre,” Kennedy added. The U.S. trade deficit with China eased to USD26.96 billion in May, compared to USD33.71 billion in June 2018, according to U.S. Census Bureau data.

U.S. President Donald Trump last week hinted he has lost interest in a potential phase two trade deal with China. “I don’t think about it now,” Trump said when asked about the possibility of another deal, adding that the U.S.-China relationship “has been severely damaged”.