The treasury secretary of the United States Steven Munich warned China of the “very significant consequences” of not honouring the trade deal that was signed by both countries earlier this year. The secretary made this warning on Monday. He said “I have every reason to expect that the honour this agreement. And if they don’t, there would be very significant consequences in the relationship and in the global economy as to how people will do business with them”. The trade deal was signed in January. The president of the United States has threatened to end the grade deal with China if the commitment of buying an additional USD 200 billion of agricultural products from the US. Under the initial trade deal, Beijing had agreed to buy at least USD 200 billion more in the US products and services in 2020-2021, two years period.
The relationship between China and the United States has been really bitter in the past weeks. Trump blames China for the pandemic and even stopped funding the WHO because of the accusations of misusing the funds and being China central. The United States has been really affected by the pandemic killing thousands and infecting millions not just in the USA but globally as well. According to AFP, the US runs a trade deficit with China with the objective of realigning the trade balance between both countries. A senator, Ted Cruz has said that the global pandemic is evidence that China is the greatest threat to the US. The senator also added that “We know they covered it up. We know that when heroic whistleblower doctors tried to draw attention to it last December, the Chinese government shut them up and punished them”.