Beijing’s problems in the trade war with USA


In the Chinese leadership, there should be differences over the price in the trade dispute against the US. The emphasis on national strength is not enough, is it. On the party’s retreat in Beidaihe is looking for consensus.

So far, the economic impact of the mutual acquisition and announcement of punitive tariffs between the USA and China, the two largest economies in the world seem to hold in limits. China’s exports to the U.S. still increased in July, even after the United States had set the first round of punitive tariffs in force.

Signs of strong Inflation there is not. According to economic experts, China’s Central Bank to take further monetary policy game is given room for growth.

Also on Whisky and peanut butter from the United States punitive tariffs are levied in China

Impressive Were The Volumes

The of the penalty duties potentially affected volumes Were impressive, with US $ 250 billion in Chinese imports in the United States, 110 billion in the reverse direction.

Up to now, China has responded to each of US-criminal tariff measure to the same extent, but in order foreseeable limits, because it imports much less from the US than Vice-versa exported to the United States. The Trump complained of the trade imbalance is for the benefit of him now, to take China in the pliers.

So far, Beijing has been assured of victory and said that we are not going to cave in to the US. “They didn’t want the war, no trade, shy of him but,” it was said from Beijing. But in the meantime, seem to be growing in the state leadership doubts as to the wisdom of the current strategy.

(Archive), In contrast to the Rest of the world will be displayed in China, falling share prices with Green

Panic on the stock exchange

Especially if you want to avoid panic in the notoriously volatile stock markets of China. Rate fluctuations should not be used in connection with the Trade dispute. The main stock index in China-SSE Composite (Shanghai Stock Exchange Composite Index), is down this year by more than 20 percent.

In private conversations, in party circles in the Chinese capital, of which the DW knowledge, have recently been unusually critical remarks about the handling of the trade to hear the dispute, such as a Manager of a state Bank: “No one can understand Xi Jinping’s why he plays so bad, in spite of good cards in the Hand. We have already lost a round of terrific.”

The anesthesiologist told me he was entitled to withdraw a conversion of RMB into dollars only 5000 Dollar bar. “Later, I will buy even more US dollars. The devaluation of RMB is hard-coded.” It is especially Worried before a financial crisis, triggered by an escalation of the conflict with the US, the minds of the leadership.

Criticism of the leadership

Several unnamed sources from government circles have told the Reuters news Agency, the criticism in detail, which is currently being practiced at the leadership, including Xi Jinping. The Tenor is that Beijing is carved in the nationalist notch and compared to the United States in an illusionary victory a certainty have moved.

“The development of the confrontation with the United States of a Trade dispute, a trade war has led to the fact that the people have again nachdacht new”, Reuters quoted an expert from a Chinese policy Institute.

XI’s economic adviser, Liu He in may in Washington

Negotiations unsuccessful

In may, it had looked for a new round of Negotiations in Washington as the trade could be mitigated in dispute. “The United States and China declared in a joint statement that they had agreed on effective measures to reduce the trade deficit of the United States with the people’s Republic of substantially”, as it was then.

This vague Declaration of intent has led to nothing showed in the beginning of July, as the USA were the first punitive tariffs in force. Also verbal was upgraded. Washington accused Xi Jinping in mid-July, to prevent progress in the solution of the conflict, while his Top economic adviser, Liu He was, allegedly, willing to compromise, even on sensitive issues such as technology transfer.

This position was rejected by Beijing immediately. “The unexpected twist of facts and false accusations are shocking and unimaginable.” By contrast, the 180-degree rotations of the USA and their broken promise around the world are known.

Trumps course puts Beijing ahead of problems

Apparently, Trumps represents the stubborn Adherence to its course to punish China for its “unfair” trade practices, the leadership in Beijing. “In the trade war has been followed in our Propaganda, first of the line, to characterize Trump as crazy. But the fact is that Trump is afraid of a strong China,” Reuters quoted an official from the Propaganda.

In fact, Beijing has already taken some weeks ago in terms of Anti-Trump Propaganda on the brake. You should not attack Trumps “ordinariness” and not in a “war of insults” issued as a Directive of the Propaganda authority.

(Archive) summer Conclave in Beidaihe has a long Tradition. State founder Mao Zedong bathed in the summer of 1960 here.

Summer Conclave in Beidaihe

So what to do? What are the messages you should send in light of the ongoing tariff war with the USA outwardly, but especially inwardly? This is likely to Beidaihe in the current traditional summer Conclave of the CCP leadership in the seaside resort, about 300 kilometers East of Beijing, is the question. If, in addition, also deep tensions between the seemingly unassailable Xi Jinping and inner-party’s opponents to light, remains pure speculation.

It could be in Beidaihe exciting, suggested a Chinese Journalist, as he reports in a private round in Beijing, complained: “In the past few years, reporters from the immediate vicinity were allowed to. This year, a Reporter for the state press accreditation could not change.”