Expert: `China lost the trade war with the US` 0
(Dan Tri) – Analysts say there is evidence that China lost the trade war with the US although Beijing has never admitted this.
Chinese President Xi Jinping (left) and US President Donald Trump (Photo: Getty)
Reuters news agency recently cited Chinese government data as saying that the country’s slow economic growth rate tended to worsen in August, when `industrial production growth was at its lowest level.`
Despite the above unfavorable figures, Chinese Prime Minister Li Keqiang affirmed that China is still on track to achieve a growth rate of 6 – 6.5% this year.
According to analyst Helen Raleigh on Fox News, because the Chinese government often tends to paint a brighter picture for the Chinese economy to achieve political goals, most people
Researchers at the Brookings Institution estimate that China inflated its GDP growth rate by nearly 2% per year between 2008 and 2016. In reality, China never achieved that growth rate.
President Trump’s measure of consecutively imposing trade tariffs has dealt a strong blow to China as its economy is shrinking and causing a heavy impact.
Beijing hopes measures to stimulate the economy, including tax cuts and preferential credit support for large businesses and local governments, will reduce or even eliminate the negative effects
Difficulties and solutions of China
China cannot rely on its consumers to stimulate economic growth because of rising pork prices.
China hopes that causing damage to American farmers will pressure President Trump to make concessions in the trade war.
First, although American farmers suffered and criticized the trade war, their support for the president increased.
Second, China’s pork industry is witnessing the worst African swine fever epidemic in decades.
Rising pork also pushes up the prices of other meats, thereby increasing inflationary pressure on the Chinese economy.
China has removed some US agricultural products, including soybeans and pork, from the list of additional tariffs effective from September 17.
However, this seems to be a desperate and self-rescuing measure for China, because all other pork exporting countries combined cannot meet the shortfall in pork supply to China.
If China hopes that it can just wait until Donald Trump loses the presidential election next year before signing a trade deal with the US, then Beijing should think again.
After the attacks on two Saudi Arabian oil refineries on September 14, oil prices skyrocketed and may continue to escalate.
The combination of rising oil and food prices has not only put more pressure on China’s faltering economy, but has also prompted some measures to stimulate the economy, such as devaluing the yuan.
China has poured billions of dollars into Iran’s economy through the Belt and Road Initiative.
“The US and China will still resume trade negotiations in October, and China will continue to behave tough in negotiations, but that cannot hide the fact that China has
Success
According to Fox News
