The coronavirus outbreak could reduce Chinese purchases of US agricultural products this year under the Phase 1 trade deal signed by the two countries, White House national security adviser Robert O’Brien said on Tuesday, reported Reuters.
“We expect the Phase 1 deal will allow China to import more food and open those markets to American farmers, but certainly as we watch this coronavirus outbreak unfold in China it could have an impact on how big, at least in this current year, the purchases are,” O’Brien told an event at the Atlantic Council.
The Phase 1 trade agreement, which was signed on Jan. 15, calls on China to boost its purchases of US agricultural commodities by $40 billion over the next two years.
O’Brien said China plays a critical role in the global supply chain and the coronavirus could be disruptive. “There’s no doubt that the virus could have an impact on the US economy and also on the world economy,” he said.