Trump avoids tech in State of the Union address

Andrew Cummings
February 6, 2019

American firms would capture only six percent of about $250bn of the affected Chinese exports, while Chinese companies would retain 12 percent, despite the higher cost of trade, the study said.

"I don't blame China for taking advantage of us".

The Chinese trade delegation said in a statement that the talks had made "important progress", China's official Xinhua news agency reported. "US-China bilateral trade will decline and replaced by trade originating in other countries", she added.

Senior US and Chinese officials are poised to start another round of trade talks in Beijing next week to push for a deal to protect American intellectual property and avert a March 2 increase in US tariffs on Chinese goods, two people familiar with the plans said today. US-China Trade War "Most Stupid Thing Ever", Says Alibaba Chief Jack Ma.


The soybean market is a case in point. If the tariff increase does, in fact, take place; it's not entirely clear how China will respond, but so far it's matched the U.S.'s tariffs tit for tat.

She said the USA tariff hike and a retaliatory move by China would trigger an economic downturn because of instability in commodities and financial markets, while company moves to adapt would put pressure on global growth. But because the magnitude and duration of tariffs is unclear, Brazilian producers have been reluctant to make investment decisions that may turn out to be unprofitable if the tariffs are revoked.

The report said Asian countries are likely to suffer most from protectionism.

The China-driven rise in soybean prices in Brazil has also pushed up costs for local businesses that need to buy soybeans for animal feed and other uses.


The study also underlines the "common concern" that trade disputes have an unavoidable impact on the "still fragile" global economy, particularly on developing, commodity-rich countries that are dependent on exports.

"Countries that are expected to benefit the most from U.S". "One major concern is the risk that trade tensions could spiral into currency wars, making dollar-denominated debt more hard to service", the report added. But the trade war will also have a number of negative effects on global trade, especially within certain markets.

Last year, the United States levied tariffs of between 10% and 25% on $250bn worth of Chinese goods.

For example, the high volume of Chinese exports affected by U.S. tariffs is likely to hit East Asian value chains the hardest, with UNCTAD estimating that they could contract by about $160 billion.


"China is still going to emerge as the largest economy in the world probably within 10 years, " said David Dollar, a former U.S. Treasury representative in Beijing now at the Brookings Institution. March 1, 2019 is the deadline for implementing the measures.

Other reports by iNewsToday

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