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|Photo: The United States currently runs a trade deficit with China, whose port at Lianyungang in the eastern Jiangsu province is pictured. (Photo: AFP/STR)|
The comments come amid a sharp drop in global trade caused by the coronavirus pandemic as well as a dispute between the two powers over fault for the spread of the virus, which first broke out in Wuhan, China.
The US and China in January signed an agreement to end a nearly two year-long trade war, that included a commitment by Beijing to buy an additional US$200 billion in American goods over the next two years.
"I'm expecting them to meet their obligations," Mnuchin said on Fox Business Network.
"I have every reason to expect that they honor this agreement and if they don't, there would be very significant consequences in the relationship and in the global economy as to how people would do business with them."
However, relations between Washington and Beijing have soured in recent weeks, with US President Donald Trump blaming China for the pandemic, and threatening tariffs.
The US has been hit with tens of millions of layoffs as the virus has spread, significantly weakening the previously solid economy, which Trump was counting on to win re-election in November.
The trade agreement signed in January includes US$77.7 billion in additional purchases from the manufacturing sector, US$52.4 billion from the energy sector and US$32 billion in agricultural products.
The US currently runs a trade deficit with China, and the objective is to realign the trade balance between the two countries.