Now the high-lumped sky on the US-China trade, the high tariffs and announced the trade embargo in each other that they normally declared a war act. Economic results for both will hurt.
$ 150 billion in America (113 billion pounds) or therefore, the export of $ 440 billion can be reduced to the United States if China’s Negotiations have not taken place. No one will be saved.
The results can take this summer with a soft recession in this summer and make one of the main weapons of America, ie the power of energy, arm and financial system. The leading indicators of consumer confidence, inflation and capital expenditures are all flashes of flashing warning. This is also a wind that brings a rising bond product in the US Treasury market last week last week.
This Trade War is undesirable to the Chinese Communist Party, which only reveals an alarm in the main fragility of its economy last month. China’s exports have been widely expanded in the fire last year, accounting and trading half of the growth. The country has received a trade surplus of 2tn in the goods produced. The government can get a trade torpedo because it is trying to stabilize the beleaguered property sector along with debt and active deflation in local governments and finance.
Donald Trump and Xi boasts and determination, but if you do not call, war dogs, there are reasons to retreat. The chances of immediate rapprochement look poor, but not hopeless. The Ministry of Trade of China said the weekend, the future of the future will ignore the escalation of the United States. Although the United States is temporarily, it was released from tariffs for smartphones, chips and electronic equipment. As a result, a kind of operation “deal” – part of high tariffs, maybe other issues, other issues are most likely seem.
The United States wants to avoid some of China but more powerful financial and export control weapons. If China has long been complained under the motto, and the XI wants, the Yuan was more aggressively, and targeted a part of American companies, the chances of negotiations.
Trade talks would not be a panacea for fundamental issues divided by these two strengths, but it can take a while and at least continue the dialogue at least.
The effect for the rest of the world, an interesting way, the owner of the British Steel and China, pointed to the crisis covering Jingye Group. Although seemingly a world is away, there is an important connection. Jingye in the United Kingdom and French plants, “Britain” and avoid steel tariffs and other trade restrictions when selling us and the United States.
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In addition to investing in this way, China has to exceed “Trans-Shipping”, especially in Asia, especially Mexico, as well as Mexico, as well as Mexico and trade barriers. About the exports of all China are now transxen. The highest tariffs called “mutifiers” from the United States in more than 100 countries, are partially developed to stop it in Asia.
In these tariffs (former China) recently, the 90-day break, a reaction to stabilizing both American financial markets, and Washington hopes to discuss new trade regulations on investment in China.
The EU and England appear in “break” mode to get revenge, Japan and South Korea opened official channels along with Japanese and South Korea and signal from Vietnamese, Cambodia, Thailand and India, for example. It’s a complex picture. Many nations have been very integrated into China’s trading system, but many have carried out trade measures against China to protect their production, jobs and communities. No one wants to lose access to the US consumption market with 30% of the world. China’s mermiticist nature can not fill in the gap and only wants to expand its exports.
The trump leadership trial of this trade war is chased and often thought. However, it is important not to see the cause of the trade conflict in the first place, and this is like China’s reaction to the rising trade surplus. This is from a political system that gives companies exceptional, distorting competition, limiting market access and applying real economic costs about other nations. Caveat Emptor.
