Here's a headline I don't believe: a senior U.S. official says Outbreak will not Change China's Commitments to Buy U.S. Goods.

The U.S. government expects China to honor its commitments to buy more U.S. goods under a trade deal signed by the world’s two largest economies in January despite the fast-spreading coronavirus outbreak, a senior U.S. official said on Thursday.

China’s commerce ministry on Friday said January and February exports and imports would be hit by the coronavirus outbreak, but foreign companies in most places would resume production by the end of February.

Under the deal, which took effect this month, China pledged to increase U.S. goods purchases by $77 billion in 2020 and by $123 billion by 2021, compared with a baseline of U.S. imports from 2017, the year before the U.S.-China tariff war began.

Experts had expressed skepticism that China would be able to meet such aggressive purchase commitments even before the coronavirus emerged, while reports of new cases in China and elsewhere have further intensified fears over its impact on the global economy.

RECOMMENDED ARTICLES

But the Global Times newspaper, which often speaks for the Chinese government, reported on Thursday that China was likely to buy 10 million tons of U.S. liquefied natural gas despite a gas glut.

I am standing in line with the skeptics.

And color me skeptical on that production resumption as well.

What percentage of normal production will China have back up?

Mike "Mish" Shedlock

Trade Lie of the Day: Kudlow Claims US Exports to China Will Double

Round one of the US-China trade deal is allegedly "absolutely done". Let's investigate that and other claims.

China Trade Deal "Success": Details None

The US and China both claim trade talk success. There are literally no details.

Trump Hints at Trade Deal With China After he Wins Reelection

The top Trade team from the US will meet with China but expectations are not high.

Who Will Win the Trade War? Some Say China, Others Say Trump

Stories abound regarding who will win Trump's trade war with China. Trump? China? Neither? Both?

Trump and China to Sign Trade War Ceasefire on Wednesday

On Wednesday, the US and China will sign a compromise deal that will calm but not end a two-year trade war.

Understanding the Trade "Nuclear" Threat, China Dumping Treasuries

It's highly unlikely China would dump US treasuries in a trade war. Yet, the talk surfaces all the time.

China Pledges US Buying Spree to Reduce Trade Surplus With US to Zero By 2024

China pledges to buy over $1 trillion in US goods and services by 2024 to eliminate the trade gap with the US.

China's Global Trade Surplus Expected to Go Negative, US Not the Beneficiary

China's trade surplus with the rest of the world is shrinking at a fast pace, just not with the US.

China Posts Largest-Ever Annual Trade Surplus with US: What's it Mean?

China posted a $275.8 billion trade surplus with the US in 2017, even though its overall surplus shrank. What's next?