Coronavirus May Damage Chinese Economy, US Agreements
Despite the continued outbreak of China's coronavirus, the U.S. government still expects China to buy more U.S. goods, as per the trade deal signed in January, according to a recent article in Reuters. The disease will likely cause further damage to the Chinese economy, although the U.S. Treasury said it is still too soon to determine how exactly the virus will continue to impact China economically.
The virus has also led to anxieties within American consumers and likely business-to-business (B2B) transactions. Importing goods from China—a common practice for many B2B companies—has raised questions about the spread of the virus. According to the Centers for Disease Control and Prevention (CDC), the virus has a "very low risk of spread from products or packaging," making trade with China a low-risk decision.
If the spread continues, China may see a decline in their economy. While it is still too soon to make more accurate predictions, the U.S. Treasury said China's growth will likely drop in the first quarter but will then bounce back quickly.
—Christie Citranglo, editorial associate