Here’s why the market is looking past the trade war

Clay Curtis
September 24, 2018

Ralph Bradley, chief executive officer of a small automotive lighting manufacturer in Fort Worth, has more than $300,000 worth of products coming to the USA on a boat from China.

His remarks gave a lift to the yuan, which has lost about 9 percent of its value since mid-April amid the ongoing trade war.

As President Donald Trump continues to escalate the trade war with China, researchers fear the USA auto industry could be hit hard. The MFN rule requires all countries to be treated equally unless specific exceptions are agreed, and the U.S.is also covered by MFN status.

This nonsense is going to go on for a long time, and everybody will end up at least slightly poorer, but it probably won't bring on the Second Great Recession.

On Wednesday, Foreign Ministry spokesman Geng Shuang said he had no information on a possible trade delegation and questioned USA sincerity about wanting new talks, noting that the last round was followed immediately by the activation of new tariffs.

The administration says its demands are clear: Stop stealing trade secrets. The same applies to potential USA job losses due to declining exports to China: they won't happen fast enough to have any impact on November's mid-term elections in the United States.

While the direct economic impact of the dispute on China has so far been limited, the trade tensions could rapidly push Chinese exporters to switch away from the United States market, a former chief of China's central bank said on Wednesday. In it, Walmart joined other industry players in sounding an alarm that American shoppers will suffer the most if another batch of levies is imposed on goods and parts bought from China.

"China are out of bullets".

China has banned Twitch
Many are saying online that this supposed crackdown is a sign of the government further tightening its grip on gaming. Twitch has confirmed that it is being blocked but it has not said why the authorities have imposed the restriction.

"The [jobs] promise was made based on China and the U.S. having a collaborative and friendly relationship", he said in the Xinhua interview.

The Trump administration announced a finalized list of $200 billion worth of tariffs on Chinese goods September 17.

"Attempts to help those hurt by globalization via higher taxes or other forms of protectionism, even if well meaning, will raise prices and hurt all consumers, especially poor and middle-class families", economist Satyam Panday of S&P Global Ratings, told The Post.

Alibaba founder Jack Ma said his ambitious pledge to create 1 million jobs in the United States had been scuppered by the trade row between Beijing and Washington, Chinese state news reported Thursday. "And as long as it was a really small fraction of GDP, it is not a big deal, but we are running [a trade deficit of more than] $500 billion at an annual rate".

According to the trade group representing United States businesses in China, half of the American companies operating in the country are anxious there will be a "strong negative impact" from the recently escalated trade dispute.

The Global Times tabloid, which is affiliated to the People's Daily, said the trade war was a chance to pursue greater global recognition of its financial markets and that it could open its A-share market more to listings by Western firms.

"By further cutting import taxes, China is sending a message that it will keep opening up and reform no matter how the trade war goes".

Other ways in which they can impact things come in the way of company profits, hiring, and overall growth.

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