Published: Tue, April 10, 2018
Global | By Craig Ferguson

Chinese leader warns against Cold War mentality

Chinese leader warns against Cold War mentality

China's growing list of tariffs aimed at US exports could be enough to sink farmers in Iowa and other states, as they struggle to survive a five-year decline in the farm economy, mainly due to big crops and low prices.

USA shares recovered somewhat on Monday amid the toned-down US rhetoric on China along with comments from White House economic adviser Larry Kudlow that Trump was "amenable" to enlisting the support of Europe and Japan on China trade issues.

Trump has threatened to raise tariffs on Chinese goods worth $50 billion in response to complaints Beijing pressures foreign companies to hand over technology in violation of its market-opening pledges.

On Sina, a popular blogging platform, an economist formerly employed with China's central government broke down why the regime's retaliatory tariffs on US soybeans would hurt China more than the United States. Chinese officials haven't set a date for when they will enact the tariffs for the expanded list.

China is evaluating the potential impact of a gradual yuan depreciation as a tool in the trade dispute, Bloomberg News reported on Monday, citing people familiar with the matter, although it said the analysis did not mean officials would carry out the move. "If we can't get these commodity prices up, we are going to start losing farmers".

China's retaliation so far has targeted Midwest farmers, many of whom were bedrock Trump supporters.

US 10-year Treasuries fell, pushing their yields up 2 basis points to 2.806 percent.

Investors across the globe are bracing for uncertain markets as President Donald Trump tries to downplay fears of a trade dispute between the USA and China.

The yuan has been almost unchanged against the dollar over the past month as the trade dispute heated up and has appreciated about 3 percent so far this year. China reported a global trade surplus of $423 billion a year ago - about two-thirds of that with the United States. When a auto is sent to China from the United States, there is a Tariff to be paid of 25%.

Some economists fear the US could lose 40% of its global market for soybeans, which would mean repercussions for the entire USA economy. "He said "lower" auto import tariffs, which is the opposite of the trend in recent weeks from both the United States and China in "raising" tariffs".

Still, White House adviser Peter Navarro, known as a hard-liner on trade, said the threat of tariffs is not merely a bargaining chip. China has followed through on that promise. "This would be a victory for the world trading system and an important step away from the abyss of rising global protectionism". "Iowa farmers understand there are legitimate issues needing resolution, particularly those involving intellectual property rights", Leeds says.

"If we don't, they'll have to pay pretty high taxes to do business with our country". The ministry urged the U.S.

Xi repeated pledges to open China's finance industries to foreign investors but gave no additional details.

"The market is now concerned for the escalating China-US trade war tensions".

You Bin wrote in the article that he hoped the Chinese regime could lower tariffs on life-saving drugs and open up its trade policies.

"The eyes of the world were on his response today and he could have come out and talked about how we will escalate this, but he didn't", Costello said. "And we'll make it up to them". "They want an uninterrupted supply of good quality soybeans".

None of the measures have yet gone into effect. Shipley says he hopes cooler heads will prevail and a settlement can be reached to stop the tariffs from being enacted.

"Up to now, Chinese and U.S. officials have not held any negotiations on the trade dispute", China's Foreign Ministry spokesperson Geng Shuang said, according to AFP.

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