Trump and Xi think coronavirus could delay promised China purchases, Kudlow says

• President Donald Trump and Chinese President Xi Jinping said in a phone call Friday that the coronavirus outbreak could delay key trade pledges.
• But they predicted that any interference would be temporary.
• The coronavirus outbreak has closed businesses across China and disrupted global supply chains, adding to existing doubts about steep purchase quotas.
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President Donald Trump and Chinese President Xi Jinping said in a phone call Friday that the coronavirus outbreak could delay key trade pledges but that interference would only be temporary, according to White House economic adviser Larry Kudlow.

Speaking to reporters in the White House briefing room, Kudlow said the two leaders "agreed that while the virus may slow down US exports and Chinese purchases of US exports, it will be made up before the year is out."

As part of the interim trade agreement signed by the two sides last month, China said it would buy an additional $200 billion worth of American exports over two years. But the coronavirus outbreak has closed businesses across China and disrupted global supply chains, adding to existing doubts about the steep quota.

"When all of these adversely affected Chinese companies tally up those losses, that will likely lead to tightened budgets that will lead in turn to lowered purchases, especially of relatively more expensive imported goods," said Nelson Dong, a partner with international law firm Dorsey & Whitney.

Trump administration officials have maintained that the coronavirus would have an overall "minimal impact" on the US economy. The two sides agreed on the phone call to continue "extensive communication and cooperation," the White House said in a readout of the phone call.

"Just had a long and very good conversation by phone with President Xi of China," Trump wrote on Twitter early Friday. "Great discipline is taking place in China, as President Xi strongly leads what will be a very successful operation. We are working closely with China to help!"