On Monday, June 22, Director of Trade and Manufacturing Policy Peter Navarro withdrew his earlier comments regarding an alleged end to the trade agreement with Chinese Communist Party (CCP), saying his remarks had been used “out of context.”
Navarro indicated that what he said had nothing to do with the phase one trade agreement signed in January, but was in reference to the lack of confidence in the CCP. As Reuters pointed out, Navarro’s comments led to a collapse in shares and the yuan.
During an interview with Fox News, Navarro said that the “turning point” in the relationship with the CCP had occurred after the United States learned of the spread of the CCP Virus just after a Chinese delegation left Washington as soon as the trade agreement was signed on Jan. 15.
“It was at a time when they had already sent hundreds of thousands of people to this country to spread that virus, and it was just minutes after wheels up when that plane took off that we began to hear about this pandemic” Navarro said.
Regarding the trade agreement, President Trump reiterated through his Twitter account that it was “fully intact,” adding, “Hopefully they will continue to live up to the terms of the Agreement.”
President Trump’s chief economic adviser, Larry Kudlow, also rectified the misunderstanding around what Navarro said, mentioning trade negotiator Bob Lighthizer, who said the trade agreement was going well.
According to Bloomberg News, CCP officials have insisted that they intend to honor the agreement, which means increasing U.S. imports by a total of $200 billion over two years.
However, today, Tuesday, Chinese Foreign Ministry spokesman Zhao Lijian rejected Navarro’s comments, saying that he “always lies and has no honesty or reliability.”
At the same time, he said that in relation to the trade agreement, the CCP’s position “has been consistent and clear.”
According to Reuters, the U.S.-CCP trade negotiations lasted more than two years, increased tariffs on Chinese products by $370 billion, shook up financial markets, and abolished global growth before the international economic recession caused by the CCP Virus or coronavirus.
While the agreements reached between the CCP and the United States determined that China would increase purchases of U.S. goods, the irregularities caused by the pandemic led to a drop in exports of U.S. goods to China in the first quarter, leaving the Trump administration with a greater challenge.
Since the pandemic spread around the world from the city of Wuhan and triggered a shutdown in the U.S. economy, relations between the two countries have reached their lowest point. In addition, due to the mishandling of information about the virus outbreak, the Trump administration has repeatedly accused the CCP of not being transparent.