US-China trade peace as virus hits global economy

Beijing

A hard-won trade war truce between the US and China is at risk as the coronavirus widespread rocks the global economy, making it tough for Beijing to fulfil its commitments.

The United States also faces huge disturbance from the deadly virus while a diplomatic spat between Beijing and Washington threatens to derail the phase-one deal that came after more than a year of escalating tensions between the world's two biggest economies.

In the pact signed in January, China agreed to buy US$200 billion more in US goods over two years than it did in 2017 - before the trade war erupted and triggered tariffs on billions of dollars of two-way trade.

But concerns are mounting that the conditions of the deal cannot be met as the world economy is threatened by governments taking drastic measures to contain the outbreak, including quarantines, travel bans and closures of public spaces.