The United States raised the demand grows, which means the trade war can hardly end soon …
The trade war between the United States and China will be tense. After months of risk-taking and warnings, the “hawks” in the administration of President Donald Trump are winning against the moderate, Bloomberg news agency said.
Trade talks held last week in Washington between US and Chinese officials have not worked, and this is seen as a signal that the two sides will soon cease firing. In the future, the United States may impose tariffs of up to $ 200 billion in China, and Beijing has announced its readiness to respond.
“We will see escalation in the coming months,” said David Dollar of the Brookings Institution.
Last week, while officials were negotiating, the US imposed a $ 16 billion tax on Chinese goods, and China immediately imposed a tax on the US $ 16 billion in retaliation.
On Friday, Trump called for new restrictions on investment from China. “To date, we have not paid enough attention to China, which has taken a long time,” Trump said at the White House Thursday, signing a law that would increase power. The Commission on Foreign Investment in the United States (CFIUS) – the authority to block acquisitions on the basis of national security.
On Friday, US officials met with European and Japanese counterparts in Washington to discuss ways to force China to change policy.
All these developments were seen by analysts as a triumph for China’s hardline side in the Trump administration.
China ‘s hawkish triumph is also reflected in the growing demand from the United States for China in the United States. Last week.
Earlier this year, when US Treasury Secretary Steven Mnuchin and US Secretary of Commerce Wilbur Ross arrived in Beijing for talks over the last few months, a major priority was to ensure that China continued to buy soybeans, gas and other US goods to reduce the US trade deficit with China.
But now the goal of the Trump administration is much larger. Washington requires China to make structural changes in its policies, such as the end of industrial subsidies and the situation in which the United States considers China to steal intellectual property. These are issues prompted by “hawks” including US trade representative Robert Lighthizer and White House business adviser Peter Navarro.
Growing demand means that the trade war is unlikely to end soon.
In addition, the steady growth of the US economy can now enable the Trump administration to push up trade. US businesses are complaining about tariffs, but are also benefiting from Trump’s tax cuts. The Brookings Institution’s Dollar expert says that the real impact of tariffs on the US economy is to be seen in 2019.
Recently, US Federal Reserve officials have referred to the trade war as a major risk to the US economy, but not in the short term.
Fed Chairman Jerome Powell said Friday at a Fed conference in Jackson Hole that the US economy will continue to grow and that the pace of interest rate rises will be sustained. In this speech Jerome did not mention the commercial war