There was a bad mood between the USA and China before the Corona crisis, but it has now intensified. The reason for this is Trump's allegations that China failed to fight the virus. This also has consequences for trade relations.
US President Donald Trump has dampened hopes for progress in negotiations on a further trade deal with China. He is not currently considering discussing a phase two deal, "I am not currently considering it," Trump told reporters on the Air Force One presidential plane when asked if a phase two deal would continue lying on the table. He is currently dealing with many other things.
Relations between the two countries have been damaged by the corona pandemic, the president said. "They could have stopped the plague, but they didn't stop it," said Trump. They did not prevent the virus from reaching the rest of China from Wuhan Province.
The so-called Phase One agreement in January had brought relief to Trump's trade dispute with China, which had started. Beijing agreed to import more US goods and respect intellectual property. In return, Washington waived new punitive tariffs and partially reduced existing tariffs.
Most recently, the trade adviser to the Presidential Office, Peter Navarro, had startled markets worldwide with the statement that the first phase was "over". Navarro later said the statement was taken out of context. Trump himself said on Twitter that the first phase was "completely intact".
It's much more than the virus
Relations between the two economic powers have been deteriorating for years. The latter is the coronavirus pandemic that Trump blames China for. However, Trump's allegations that China overreached the United States had caused burdens before. It's not just Trump's personal worldview. He also has support from the Democrats for the confrontational course on China. It is sometimes said that the two closely linked economies should decouple.
The USA also see China as a competitor militarily. So there are always tensions in the South China Sea, which China claims to a large extent. The USA, on the other hand, advocates freedom of the sea and thus important shipping routes.
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