Jeremy Siegel: Trump Needs China Trade Deal to Get Re-Elected

Stocks dip as Trump raises doubts about China trade talks

Stocks dip as Trump raises doubts about China trade talks

The annual review of China's economy - known as the Article IV report - was completed before President Donald Trump announced plans to impose 10 percent punitive tariffs on United States dollars 300 billion in imports, which means that starting September 1 all products from China will be subject to duties in the intensifying trade war. "We have the standard of the world", the president said as he left the White House for a fundraiser in the Hamptons.

But US duties of 25 percent on Chinese goods not yet facing tariffs would slow the economy in the following year, the International Monetary Fund said in a report.

Escalating tension between the USA and China over trade was the catalyst for the big swings in the market this week.

Washington and Beijing have been embroiled in a trade war in recent months, with American tariffs now applied to $250 billion worth of Chinese goods, while the president has threatened additional penalties on another $325 billion in trade. China also allowed its currency to drop against the dollar to a key level unseen since 2008.

Mu said issuing a digital currency using a pure blockchain architecture would be hard to achieve in a country as big as China because retailers require high concurrency performance. "If the US gives out new waivers to companies who want to do business with Huawei, this could be seen as an olive branch that may incentivize China to start buying agricultural products again", Eitelman remarked.

But there is "an bad lot China can and should be doing" as part of that process, he said, including continuing reforms to open up more sectors of the economy, reducing impediments to trade and boosting consumption.

The EU remained China's largest trading partner between January and last month, with bilateral trade volume up 10.8 per cent year-on-year to 2.72 trillion yuan, followed by Asean, up 11.3 per cent to 2.35 trillion yuan, and the U.S., down 8.1 per cent to 2.1 trillion yuan. "Twenty-five years of abuse". "I'm not ready so fast".

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In practice, the labeling of China as a yuan "manipulator" by the United States this week-and the surprise interest-rate cuts by global central banks-means Beijing risks a global currency conflagration and even slimmer chances of a trade war resolution. "We have all the cards".

FORMER China central bankers warned Saturday of currency-war risks with the USA after an abrupt escalation of trade tensions between the world's two biggest economies last week. "We're doing well. Our country is doing fantastically well".

"It is the US' escalating trade friction that has affected the exchange rate of the yuan, to which the market has already fully responded", said Wang.

Locke, who was appointed by President Obama and served in the post for three years, said combined with China's response, these tariffs create a double-whammy for the USA consumer.

The gloomy, and uncertain, outlook will make PBOC policy makers' decisions about how best to support the nation's slowing output with the exchange rate in mind more hard.

The yuan's depreciation makes USA exports to China more expensive, which will hit the USA economy in the short term, Cong told the Global Times on Thursday.

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