Donald Trump threatens to cut ties with China over coronavirus

US President refuses to speak with Xi Jinping.

President of the U.S.A Donald Trump questioned the recent trade agreement with Beijing due to the Covid-19 pandemic and suggested America would save $ 500 billion if Washington "interrupt" bilateral relations.

Speaking about the wide range of claims against China in a pre-recorded interview with Fox Business Network, Trump said: «I have a very good relationship [with the President of China Xi Jinping], but I just don’t want to talk to him right now».

«They shouldn’t have allowed a pandemic. So I did a great trade deal, but now I don’t feel any backlash, ”Trump said. – I am very disappointed in China».

«The ink is barely dry and the plague has come, it doesn’t seem to me anymore», – he said, referring to the first phase of the trade deal he signed with the Chinese Deputy Prime Minister. Liu He in January, in accordance with which China committed itself to purchase additional US goods for $ 200 billion within two years.

Trump, however, said that «they will buy for $ 250 billion», excluding additional USD 50 billion.

Doubts over China’s ability to meet procurement commitments have escalated for reasons on both sides most directly or indirectly related to the pandemic.

For example, it will be difficult to increase pork exports to China as US production declined following the Covid-19 outbreaks at processing plants Smithfield Foods and Triumph Foods. China’s WH Group owns Smithfield Foods.

«Given the terms of US supply, China is now in short supply of pork due to African swine flu, and US meat producers are unable to meet demand due to the virus being part of an export boom to meet China’s needs.», – stated on wednesday Daniel Rosen, Founder of the New York-based research consultancy Rhodium Group, during an online discussion hosted by the U.S. National Committee on Relations with China.

At the same time, Beijing is limited in the area in which it can take incentive measures, Rosen said..

«China is in a rather weak position in terms of stimulus, he explained. – The data suggests that this time they will not be able to stimulate almost as well as last time», when Beijing adopted tough tax measures to stabilize its economy amid the 2009 financial crisis.

China experienced a 6.8 percent economic downturn in the first quarter, likely to weaken domestic demand.

While official government unemployment figures do not include migrant workers – a significant share of the labor market – a study by brokerage firm Zhongtai Securities in late April found the real unemployment rate to be 20.5% with 70 million unemployed..

Answering a question about the proposal of the Republican Senator Tom Cotton Trump said last month that Chinese students wishing to study in areas such as quantum computing and artificial intelligence in the interests of national security should be denied US visas: «There are many things we could do … we could end the relationship».

«We would have saved $ 500 billion if we had severed all relations», – Trump said, referring to the approximate cost of annual US imports from China.

Turning to the origins of the coronavirus pandemic, Trump apparently ignored the proposal of the US Secretary of State Mike Pompeo, which has since been largely denied by U.S. intelligence that the infection may have been deliberately created in a Chinese laboratory.

While discussing the issue on April 30, the Office of National Intelligence released a statement stating that it «agrees with the broad scientific consensus that the Covid-19 virus was not man-made or genetically modified».

Donald Trump threatens to sever ties with China

However, the president did not give up his opinion that China is to blame for not controlling the spread of the disease..

«I don’t know if they made a decision, but it got out of hand, Trump said. – I think it’s more likely that it got out of control … We have a lot of information, and this is not good. Whether it came from a laboratory or from bats, it was all from China and they had to stop it.».

Trump, meanwhile, sent mixed signals in an interview with Fox about whether he would allow U.S. regulators to audit Chinese companies listed on U.S. stock markets – a change that some lawmakers have been pushing for..

The problem is that he «very persistently» tried to get Chinese people to comply with American accounting standards.

«Let’s say you want to be tough», requiring Chinese companies to admit US audit inspections as a condition for listing. «What are they doing? They say okay, we’ll move to London or Hong Kong».

Bipartisan US legislation titled «Justice law» initiates a process that will ultimately lead to delisting of foreign companies that do not comply with US accounting and regulatory rules if companies fail to comply.

Senator initiated bill Marco Rubio, a Florida Republican known to take a tough line against Beijing, co-sponsored by two Democrats, Robert Menendez from New Jersey and Kirsten Gillibrand from new york.

Commenting on US supply chains, Trump slammed «globalists», which allowed too much production capacity for other countries.

«These stupid supply chains that exist all over the world. We have a supply chain, parts of which are made in all different parts of the world. When one little piece of the world gets bad it’s all very confusing», – Trump said.

«I said that we shouldn’t have supply chains. We must have them all in the United States. We have companies that can do it, and if we don’t, we can do it.», – he added.

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