US calls for 'concrete action' from China to meet Phase 1 purchase commitments

Reuters quotes anonymous US officials during an early Monday morning in Europe pushing for "concrete action" from China to make good on its commitment to purchase $200 billion in additional U.S. goods and services in 2020 and 2021 under the "Phase 1" trade deal signed by former President Donald Trump.

Key quotes

Washington was losing patience with Beijing, which had ‘not shown real signs’ in recent months that it would close the gap in the two-year purchase commitments that expired at the end of 2021.

The comments come a day before the U.S. government is due to release full-year trade data that analysts expect to show a significant shortfall in China's pledge to increase purchases of US farm and manufactured goods, energy and services.

Because we inherited this deal, we engaged the (People's Republic of China) on its purchase commitment shortfalls, both to fight for U.S. farmers, ranchers and manufacturers and give China the opportunity to follow through on its commitments. But our patience is wearing thin.

Deputy U.S. Trade Representative Sarah Bianchi told a trade conference on Tuesday that China had failed to meet its purchase commitments under the deal and the conversations between Washington and Beijing had been ‘very difficult.’

A spokesperson for China's embassy in Washington last week said Beijing has worked to implement the Phase 1 agreement 'despite the impact of COVID-19, global recession and supply chain disruptions.'

AUD/USD remains on the front foot

Despite fresh tension surrounding US-China trade ties, the AUD/USD prices refresh intraday high while consolidating recent losses. The up-move could be linked to the upbeat performance by Chinese equities and Australia PM Scott Morrison’s border opening plans.

Read: AUD/USD Price Analysis: Corrective pullback battles 200-HMA but bears stay hopeful