US and China May Not Want a Deal: Bloomberg

The trade war between the world’s two largest economies is escalating, even as talks continue in Washington, DC, and neither China nor the United States wants to back down. The US is raising tariffs on $200 billion of Chinese imports from 10 to 25 percent, and China promised to retaliate. Leaders on both sides appeal to nationalistic supporters, expressing confidence that the other side will hurt more. “Indeed, in many ways it’s the tariffs themselves, rather than a hoped-for deal to replace them, that will best deliver the economic policy platform that put President Trump in power,” explains David Fickling. Trump, intent on protecting on domestic producers and eager for extra revenue, could extend the policy to other trade partners. Fickling explains that the US goal is intellectual-property protections and reducing forced technology transfers, joint-venture requirements, and protections for state-owned enterprises, all of which would make China a more attractive for multinational investment. China pursues economic and technological dominance for its population of a billion-plus. Fickling concludes that failure to settle trade disagreements could heighten hostilities between China and the United States in other areas. – YaleGlobal

US and China May Not Want a Deal: Bloomberg

Trade tensions could be politically expedient for China and the US, and that may be why both seem alarmingly comfortable with the deteriorating status quo
David Fickling
Friday, May 10, 2019

Read the article from Bloomberg about another round of US tariffs on China.

Also read “Trump Ends China Trade Truce as Both Sides Plan More Tariffs” from Bloomberg:

“President Donald Trump boosted tariffs Friday on $200 billion in goods from China and was preparing more in his most dramatic steps yet to extract trade concessions, saying there’s ‘no need to rush’ a deal even though the uncertainty is roiling markets and clouding the global economy.” China said it would retaliate.

©2019 Bloomberg L.P. All Rights Reserved.