US warns China of very significant consequences for not honouring trade deal

WASHINGTON: United States Treasury Secretary Steven Mnuchin warned China on Monday of "very significant consequences" for failing to honor the trade agreement signed between the two countries earlier this year.
"I have many reasons to expect them to honor this agreement. And if they don't, there would be very significant consequences in the relationship and in the global economy in terms of how people would do business with them," Mnuchin told Fox News.
Mnuchin's warning to China came a day after President Donald Trump said he will terminate the trade deal with China, if they fail to honor the commitment to purchase additional $ 200 billion worth of agricultural products from the United States.
Under the U.S.-China trade agreement signed in January, Beijing agreed to buy at least $ 200 billion more in U.S. products and services in the two-year period 2020-2021 than in 2017.
In response to a question, Mnuchin said Trump is reviewing all issues with China very carefully.
"It has been very clear, he is working with intelligence agencies to understand what they knew and what they did not know. The president's main focus right now is the health of the American public and the economy of the United States, but he is studying China. emits very carefully, "said Mnuchin.
In a joint opinion piece, Andy Puzder and former Ambassador to Japan Bill Hagerty said Trump and his administration have done extraordinary work to curb the spread of the coronavirus by taking early steps to ban travel with China and provide detailed guidelines. to mitigate the spread of the virus and reverse its devastating economic impact.
"This is not the first time that President Trump has had to confront the Chinese communist regime," they wrote.
Senator Ted Cruz has said that the coronavirus pandemic shows that China is the greatest geopolitical threat to the United States.
"The most important long-term political consequence, informed by national security of this coronavirus pandemic, will be a fundamental reevaluation of the United States' relationship with China. China is the most important geopolitical threat to the United States for the next century," he said.
"If you look at the pandemic itself, the communist government in China has an enormous responsibility, an enormous direct guilt for this pandemic. We know they covered it up. We know that when the heroic whistleblower doctors tried to get attention last December, the Chinese government locked them up and punished them, "Cruz said.



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