Chinese Economist: "Due to COVID-19, US-China Agreement Implementation Is Force Majeure... Should Be Postponed"

[Asia Economy Reporter Naju-seok] Chinese economists have argued that the implementation of the US-China trade agreement should be postponed due to the novel coronavirus infection (COVID-19).

On the 18th, according to the Hong Kong South China Morning Post (SCMP), Xu Chiyuan, a researcher from the Chinese state-run think tank, the Chinese Academy of Social Sciences, and a member of the prominent economists' group "40-person Forum," made this claim.

He stated, "Due to the spread of COVID-19, the Chinese economy is facing difficulties, and the purchase of American products is inevitably affected," adding, "If possible, the Chinese government should appropriately request the US side to postpone the implementation of the agreement."

Researcher Xu pointed out that because production facilities in China are not operating properly due to COVID-19, there is a shortage of demand for American machinery, electronic equipment, and energy.

Previously, the US and China had agreed in the Phase One trade deal that China would purchase US goods and services worth $200 billion (approximately 238 trillion won).

Researcher Xu also argued that the US and the World Health Organization (WHO) declaring an international public health emergency due to the spread of COVID-19 could trigger the "force majeure" clause included in the trade agreement.

Force majeure is a provision that allows both parties to discuss when contractual obligations cannot be fulfilled due to uncontrollable reasons.