Contents page 1 — customs duties are not China’s biggest Problem-page 2 — Chinese officials are nervous On a page
For the world economy read, it was a piece of good news: U.S. President Donald Trump wants to end the trade dispute with China in November. As the financial news service Bloomberg reported, Trump important government asked representatives, a draft agreement prepare. The President had decided, after a telephone conversation with his Chinese counterpart Xi Jinping. For the 1. December has invited Trump Xi to a Dinner, following the G20 summit in Buenos Aires. The stock markets reacted well to the announcement. The rates increased around the world.
Behind the economic conflict geostrategy plug in and power politics. Trump bothers to Chinese dumping prices and the large trade deficit of USA with China. He looks especially to the domestic industry. He hopes, jobs in the United States that have migrated in the course of globalization to China. However, the allegations of his government to go deeper: Trump wants that Beijing is not completed, the large-scale subsidisation of key industries, industrial espionage and technology theft to occur, and that U.S. companies are not disadvantaged in China.
The geopolitical Background: the government of The Communist party of China wants to use the economic advancement of the country, the political and military influence of their country in the world to expand. Of course, this comes at the expense of Americans. Therefore, the US has identified government of China as a strategic Problem. How Trump wants to solve the trade dispute with China under these circumstances, so quickly, is a still unresolved question.
The US President has started the dispute. The import duties that Trump has arranged, apply since 1. September and affect 44 percent of all exports from China into the USA. The are Goods to the value of 200 billion US dollars. Currently they will be subject to a special tax in the amount of ten percent from 2019, it should be 25 percent. Only on 29. October, Bloomberg reported that If China’s government does not respond to the demands of the United States, had planned for additional duties. A few days later the trump cal turning point came then.
However, in parallel to Trumps Dinner invitation to Xi, the American authorities took tough action against the Chinese industrial espionage. Last Monday, the Commerce Department in Washington announced an Embargo against a state-controlled chip manufacturer: U.S. companies could not deliver for reasons of national security to the Chinese Tech group Fujian, Jinhua, said the authority. Shortly before that, Micron, a competing company from the United States had accused the Chinese of stealing their intellectual property. Also a company from Taiwan is involved in the case.
last Tuesday, the U.S. attorney’s office sued eight Chinese intelligence agents and hackers for alleged economic espionage. You conspiracy is accused of the theft of sensitive engine technology. Particularly explosive: the defendants, officials of the Chinese Ministry for state security. On Thursday, the day of the Trump and Xi agreed on the phone of your Meeting, accused the US justice Minister Jeff Sessions of China’s government to develop your country by means of “theft” and “American costs” economically. Sessions of the Chinese behavior is called a threat to the national security of the United States.
China’s growth is weaker
Donald Trump is assumed that the pressure could force in China since 1949, the ruling Communist party to relent. “We are strong and you are weak”, he is supposed to have according to an Insider of the White house recently said. And the latest economic data of China in here seem to confirm it. China’s economic growth falters; in the last quarter, it was 6.5 percent, the lowest since 2009. The industrial production has been growing for five months in a row, slower domestic consumption and investment activity declined in the third quarter. “The resilience of the Chinese economy,” writes the China-specialized think-tank Merics.
Trumps import duties have to do with China’s economic weakness, little to do – the duties will apply for two months, and it lasts until you take effect. How strong you are, you can, therefore, only the growth figures for the fourth quarter.