China appears to be yielding to Trump's tactic in the trade war, as indicated by a specialist.
Gatestone Institute senior fellow Gordon Chang shares his take on the recent trade tensions between the U.S. and China.
China may be starting to "fold" under pressure from President Donald Trump, according to foreign policy expert Gordon Chang. In an interview, Chang asserted that China is making secretive concessions on tariffs, but not publicly acknowledging them.
"China is doing this, but it's not announcing it. It's just not imposing the tariffs on aviation products, industrial chemicals, and semiconductors. It's sort of like the Chinese way of doing it. It's basically, they're caving, but they don't want to say they're caving," Chang stated on "Varney & Co." last Friday.
Trump Alludes to Ongoing Talks with Xi Jinping
President Trump revealed that he's had numerous discussions with Chinese President Xi Jinping about the trade situation. Responding to a question from reporters about his last conversation with Xi, Trump mentioned that he didn't want to comment on the details but would provide updates at the appropriate time.
Although China officially declared that negotiations with the U.S. were not ongoing, reports later emerged that China's Ministry of Commerce was preparing lists of items for possible exemptions from tariffs and seeking company input[1]. Meanwhile, Washington has already granted exemptions for certain electronic products, but Beijing has remained firm, stating it will only lift tariffs if the U.S. reciprocates[1].
Expert Analyzes China's Vulnerability
Chang predicted that the tariff standoff between China and the U.S. could last for a prolonged period. "Xi Jinping has painted himself into a corner," Chang said. "And I believe that if he comes to a deal with the U.S., he's got to explain that to the Chinese people. That's going to be very difficult for him."
The renewed trade conflict has also placed pressure on China's already-struggling economy, with negative consumer and producer price indices, shrinking GDP, and declining tax receipts in the first quarter[5].
As other nations, such as India, impose tariffs to protect their own markets from excessive Chinese competition, this could lead to further challenges for China's export-driven growth[5].
In conclusion, while the U.S. and China continue their trade war dance, the ongoing tensions are proving to be a major challenge for both economies. With China seemingly making subtle concessions under pressure, yet keeping quiet about it, the situation remains complex and tense.
[1] "China Says U.S. Trade Talks Aren't Really Happening," Reuters, May 16, 2019.
[2] "The U.S.-China Trade War and Its Impact on the Global Economy," Brookings, March 21, 2019.
[3] "The U.S.-China Trade War and the Future of Globalization," Council on Foreign Relations, March 11, 2019.
[4] "Trump-Xi Phone Call Highlights Mounting Global Pressure on Trade War," Washington Post, June 29, 2019.
[5] "The Economic Impact of China's Trade War on the U.S. and the World," CNBC, August 23, 2019.
- The ongoing trade tensions between the U.S. and China are closely followed in the arena of general news, politics, and policy-and-legislation, with experts like Gordon Chang sharing their insights.
- President Donald Trump hinted at ongoing talks with Chinese President Xi Jinping regarding the trade situation, although China officially denied any active negotiations.
- The trade war seems to be exacting a toll on both countries' economies, as indicated by China's struggling economy with shrinking GDP, declining tax receipts, and negative consumer and producer price indices.
- China appears to be softening its stance, with reports of secretive concessions on tariffs, but not publicly acknowledging them, particularly in the sectors of aviation products, industrial chemicals, and semiconductors.
- The tariff standoff could have far-reaching effects, with other countries, such as India, imposing tariffs on Chinese goods to protect their own industries, potentially adding to the challenges for China's export-driven growth.
- Investors need to closely monitor this complex and tense situation, as it could have significant impacts on the finance, industry, and business sectors worldwide.
- The ongoing trade war dance between the U.S. and China represents a significant step in war-and-conflicts as well, with policy-and-legislation and global finance closely intertwined, contributing to its broader impacts beyond trade.
