Even with several foreign -dependent sectors, China has so far dismissed offers to negotiate Donald Trump’s fares. The Chinese Central Bank has asked the country’s leading state banks to reduce US dollar purchases.
The offensive of the second largest economy in the world bets that the inflationary effect of tariffs will cause wear to Donald Trump’s government. Fees should make it even costly American products, as many of them depend on imported components.
Another idea would be to ban the importation of birds and agricultural products such as soy, which comes mainly from republican states. The Chinese has one more asset: the possibility of restrictions on Tesla, the elon musk electric vehicle automaker, one of Trump’s leading counselors. It is in China that Tesla has much of the business.
China is also the second largest US debt creditor and in recent days it has begun to pass its Treasury titles to the market. The movement led other investors to do the same – as a result, roles lost value and income had to rise – which in practice further compromises the United States deficit.
His technical-military cooperation with Russia also favors the eastern country, as Trump bets on Xi Jinping to help him get a peace agreement in the Ukraine War. Not to mention cooperation with China to prevent the flow of fentanil.
Factors that make Chinese officers believe they can bring the US president to the negotiating table. Even amid the current race between the United States and China, by developing artificial intelligence, it is difficult for the Chinese government to seek a break with the world’s largest economy.
On Wednesday, the World Trade Organization said tensions can reduce trade between the United States and China by up to 80%, which could lead to a long-term global GDP of almost 7%.
This content was originally published in China does not give in, raises Donald Trump’s tariffs and commercial war scale on the CNN Brazil website.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
