No one will win in a US-China trade war

Apr 10, 2018, 19:43
No one will win in a US-China trade war

Of note, Xi told the forum that globalisation is an irreversible trend, adding that China will do its part by taking major measures to open up its economy as soon as possible and widen market access to foreign-funded firms.

A White House official who watched a broadcast of Xi's speech said the Chinese president's reference to autos following Trump's Twitter complaints about the issue appeared to be an opportunity to develop trust between the two sides.

But Trump's newly-installed economic adviser Larry Kudlow tried to downplay those concerns, saying the United States is "not running a trade war".

"In today's world, the trend of peace and cooperation is moving forward and a Cold War mentality and zero-sum game thinking are outdated".

The latest actions risk putting the countries "on a slippery slope towards a trade war", they said. Beijing was quick to respond with its own list, and President Donald Trump subsequently announced he asked the U.S. Trade Representative to consider $100 billion in additional tariffs against China. Notice, however, that they typically involve cases where the company in question produces for China in China; and thus has little impact on USA employment.

China will reduce the tariffs on a number of imported goods, particularly for vehicles, Chinese President Xi Jinping said Tuesday.

"In this case, the U.S. and China are the top two economies of the world and also the largest two trading nations".

Numerous initiatives Mr. Xi offered up have been previously proposed.

"I read much of that speech as being about cementing China's regional leadership as an open country fostering free trade and development", Jim McCaughan, chief executive officer at Principal Global Investors, told Bloomberg Television.

Regarding orange juice, the impact should be minimum, seeing Brazil is the largest exporter of the product in the world and such United States exports are limited.

Still, given the tit-for-tat tariff threats, some saw reasons for cautious optimism in Mr. Xi's remarks.

US crude rose 2.82 percent to $65.21 per barrel and Brent was last at $70.68, up 2.96 percent on the day.

The rising trade tension between the world's two largest economies follows a USA finding that China was engaging in unfair trade practices in connection with intellectual property protection.

"Whether this message can help defuse bilateral trade tensions, we will see", Mr.

Neither the USA nor the Chinese tariffs have actually gone into effect, leaving open the possibility that the Trump administration is trying to establish a bargaining position for a future negotiation. To defend the call on tariffs, Trump has in the past said that Chinese trade practices has led to closure of American factories and loss of American jobs.

The spat between the world's two largest trading nations started last month with USA tariffs on steel and aluminum; China responded in kind with tariffs on $3 billion worth of United States exports. The program, backed by Mr. Xi, is created to make China dominate the frontiers of manufacturing in coming decades.

Gao's comments came shortly after Trump defended his proposed tariffs, saying the move might cause "a little pain" but the United States would be better off in the long run. But the rise of the massive production abilities of the Chinese over the past two decades has turned China into a threat to American interests rather than just a trading partner.

The Chinese leader promised to encourage "normal technological exchange" and to "protect the lawful ownership rights of foreign enterprises".

Chinese equities make up the biggest proportion, at almost 25pc, of the $1.1bn Asian Growth strategy at Janus Henderson Investors.

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