Again new duties, which Washington and Beijing are overrunning each other. For the Chinese the end of the flag pole is thus achieved, however, says Henrik Böhme. Now it comes down to business.
Condoms, perfume, wine, pianos, violins and Tequila: alone, on the basis of the list of affected goods, it is clear that the Chinese are sitting on the shorter lever. Once you’ve scoured everything, what US products you could punitive tariffs to impose. Goods to the value of 60 billion dollars they found. The counter Donald Trump is still loose, most recently, he has taken Goods to the value of 200 billion dollars with punitive tariffs. And you wonder in the White house, all the rest of China-to increase the price of imports dramatically. Respond to Beijing not more, not duties, then at least with new Criminal (except, to further increase the imposed duties). But what will then?
Tighter Pitch
Once you have tightened in China, the sound from the direction of the United States.”Don’t say afterwards we didn’t warn you”, topped the Party newspaper people’s newspaper a report about a possible shortage of the raw material Rare earths. Without these metals, no High-Tech industry, no smart phones, no cars. The United States are extremely dependent on China, which is 80 percent of the metals refers to the U.S. industry from there. The state-run Xinhua news Agency it is agreed in the combative tone: The people’s Republic have reduced in its history, “never your head, and never someone to be feared”. The latest Coup: a “black list” with a “dubious” foreign companies. All may sound dramatic, alone whether this can scare a Donald Trump, may be doubted.
Henrik Böhme, DW-business editorial
China’s President Xi Jinping is supposed to be best friend, right after North Korea’s leader, Kim. Only the thing is the method now so that it will be difficult to pull the cart from out of the Dirt. There’s a thoughtful enough Meetings in the framework of the upcoming G20 summit at the end of June in Osaka, Japan, barely. As required by the Americans of China’s strong man – a real opening up of the market, abandoning the Aspiration of economic know-how, etc. – can these promises impossible. This would be Xi’s stated goal of China to the world number One in power to make compromise.
China is catching so now, the next leg of out of the closet? Finally, Beijing is the largest creditor of the United States. US promissory notes in the value of over a trillion dollars, the Chinese Central Bank has in the vault. The still-largest economy in the world is living on credit and other Finance your prosperity. Stop China to buy US bonds? Or she throws their stocks on the market? It is conceivable, but not wise. Even if China has recently sold again and again, US Bonds, this served mainly to support the local economy, which is suffering more than the us under the trade war. The Chinese Central Bank would throw up large quantities of US Bonds on the market would decrease the value dramatically. When would be the most? Really, the biggest owner of US bonds. And that’s just China.
Who pays the bill
A currency war would remain still. The Dollar is the so-called world reserve currency, to irritate the Chinese a long time ago. The Americans, for their part, accuse Beijing of weakening its own currency artificially. So, as this is difficult to prove, is that the reserve currency is not so easy to change – there’s a few others talk about it. 60 percent of the world’s currency reserves are denominated in dollars. Above all, the Chinese have taken with their massive purchases of US bonds. The Dollar may weaken, for the Moment anyway, only the Americans themselves. Indeed, if the US economy is suffering to begin, if the effect of Trumps tax gifts is dissipated, then the US Central Bank will print more money, which will devalue the Dollar.
What remains is a tricky situation. A solution is currently not in sight, especially since Trump has just fired with Mexico a pacified thought trade conflict. The damage that the global economy is now expected at the end of all meetings. Will pay the price in the end, as always: workers, consumers and taxpayers.