The two largest economies are increasingly at each others’ throats when it comes to trade between the two countries; United States and China. Latest move by President Trump is to blacklist Huawei and deemed it as a national security threat. Click here to read the news. As for China, it had just cancelled an order for US pork and this is a big blow to the U.S.’s US$6.5 RM27.15) billion pork export industry. Click here to read the news. As for the assumption that all these are just rattlings instead of a real batter cry before the start of a war, I think it is a little more serious than I thought. It may be a prolonged one this time round. Do google for more news yeah.
Article in thestar.com.my here. According to state run media outlets, this is China’s response. Taoran Notes, a WeChat blog by state owned Economic daily said that if the U.S. does not make any moves that truly show sincerity, then it’s meaningless for U.S. officials to come to China for trade talks. The blog wrote, “We can’t see the U.S. has any substantial sincerity in pushing forward the talks. Rather, it is expanding extreme pressure.” It added that, “If the U.S. ignores the will of the Chinese people, then it probably won’t get an effective response from the Chinese side.” The blog repeated Vice Premier Liu He’s three main concern which are tariff removal, achievable purchase plans and a balanced agreement text. U.S. Treasury Secretary Steven Mnuchin said this week that American officials “most likely will go to Beijing at some point” in near future to continue trade talks, before later saying he has “no plans yet to go to China. Please read the full article in thestar.com.my
Let’s not debate who will win this ‘war’ yeah. These two are giants in the world economy and if they are suffering from fever, I think the rest of the world will catch a cold. As it is, we are already suffering from negative sentiment currently and there are already enough bad news circulating in all media outlets. Oh yeah, with regards to one of the reasons for the start of the trade war, this is another article about the possibility of Vietnam’s economy to be something of a duplicate of China when it concerns trade surplus / deficits with the U.S. Here’s that article for reference. Happy reading and understanding about the potential implications of any economy related issues to the property market yeah.
written on 17th May 2019
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