Trade War Hurts China While U.S. Economy Booms

On Tuesday, new evidence reveals that China feels the pain of expanding the trade war with the United States, and the key index fell to the lowest level in 11 months.

According to the National Statistical Bureau of China, nonmanufacturing buyers' index decreased from 55.0 in June to 54.0 in July. This index covers retail, aviation, software, real estate and construction activities.

Bureau of Statistics Bureau analyst Zhao Qinghe accused poorly performing poor weather, but escalation of international trade tensions led to a decrease in exports

PMI data is the latest indication that the Chinese economy is slowing down when the US economy is booming. Compared with the first quarter, China's GDP has slowed to 7% in the second quarter, and some economists believe that once the full impact of trade slowdown is taken into account, it will be as much as 5% .

The Shanghai Composite Index fell 12.6% this year, most of it fell during the first half of this year.

In recent months, the RMB exchange rate has fallen by 8%. This is a big move for major currencies. The Chinese central bank allowed the currency to fluctuate in the band, but because it is clearly willing that it will go down, it will affect the influence of President Trump to tariffs on China products equivalent to 34 billion US dollars worth It helps offset.

So far he is right. The second quarter GDP growth rate in the US reached 1%, the fastest growing year in four years. Standard & Poor's 500 index rose by nearly 14% last year, and the dollar has soared against other major currencies.

The second quarter GDP growth rate in the US reached 1%, the fastest growing year in four years. Standard & Poor's 500 index rose by nearly 14% last year, and the dollar has soared against other major currencies.

There is an indication that China feels more pain than the United States than China's request for new negotiations with Washington to solve the trade differences.

Wang Yi said at a news conference, "There is still a door to dialogue and negotiations in China, but any dialogue must be based on equality, mutual respect, rules." ""

Interestingly, the King said he visited UK foreign secretary Jeremy Hunt and China is interested in negotiating a free trade agreement. In addition, China has given German companies such as BASF and BMW the right to have a factory wholly owned by China.

These two are part of the reform plan proposed by President Trump to China before raising China's export tariff.

As the President prepares additional trade barriers to China, some economists are concerned about economic losses. According to the data of S & P Global Ratings, intense trade war may cause even greater damage to the United States. By 2021, according to the Economic Forecasts of the International Monetary Fund, the United States loses about 1% of its annual output value, or about 230 billion dollars, while China is 0.6% of its $ 18 trillion economy, I will lose. Some business groups are dissatisfied with the President's recent tariff threat. "The idea that the president will add an additional $ 267 billion tariffs is very irresponsible and it may be illegal," said Jose Castaneda, a spokesman for the Information Technology Industry Association. The US trade law is not considered to allow tariffs.

Trumps threaten to impose tariffs on 267 billion dollars of Chinese products and expand trade wars to all Chinese imports entering the United States

Last week the United States announced the latest work of the trade war with China and revealed a list of tariffs that could amount to $ 200 billion in Chinese products. So far, China is consistent with US dollar-dollar tariffs - imposing tariffs on $ 34 billion in goods in June - if the US moves, China is another more destructive thing It is a product that you will have to use. Weapon theory, the United States can impose tariffs on Chinese goods. This is 105.0 billion dollars, the total dollar value of goods imported from China from China in 2017. President Trump said he thought he could charge tariffs on all of these items if he needed it. On Friday. As China imports only US $ 130 billion worth of US products, it is not comparable with President Trump's latest tariff threat.