The US and China are on the verge of a trade war

The United States and China are once again on the verge of a trade war after Chinese authorities ordered large state-owned agricultural companies to suspend purchases of some farm products from the United States. Bloomberg writes this concerning sources.

The ban affected, among other things, American soybeans and pork. Private companies were also advised to suspend purchases from the United States. The reason was the threat of the American side to impose sanctions against China because of the situation in Hong Kong.

Washington and Beijing in early 2020 concluded a truce in a protracted trade war that lasted from the end of 2017 and included mutual exchanges of duties. As part of the first phase of the trade agreement, the US and China agreed that the latter would purchase $ 200 billion worth of goods and services from the US side. This included agricultural products. In response, the US pledged not to restrict Chinese imports.

However, relations between the two countries have strained amid accusations against Beijing from Washington of providing false information about the coronavirus outbreak. Then relations deteriorated even more after the words of American president Donald Trump about the upcoming sanctions against China over the national security bill in Hong Kong. The US considered the document to violate the Autonomous status of the territory.