Tuesday will start regular talks between the US and China. But what do we see? Trump makes concessions, and it reported that it can not raise tariffs on imports of China's $ 200 billion, as promised earlier, and even willing to shift the deadline for making a decision. While President Xi Jinping is attempting to introduce measures against the leading sectors of the state that washes hurt Trump's election campaign.
According to experts, the outcome of negotiations in many ways will determine the future policy for the leaders of the states, it is very important who was the first to make concessions. If this will be the United States, they will be far behind China, if China is to concede, and then there will be some difficulties - it is necessary to adjust to WTO rules, it is quite difficult for Beijing.
It can be said that the current negotiations will not bring trade truce between the major economies of the world, but certainly the curtain slightly open for further action by the parties, because experience has shown that in such cases is difficult to immediately get a win, it is given slowly.
The consequences of the Sino-US trade war
1. Corporation BMW leaves the United States and carries a factory in China. This is due primarily to the rates for steel and aluminum. Companies cheaper to move production and not to suffer losses because of high tariffs.
2. Soybeans. US farmers have suffered significant losses because of the Trump tariffs, as China has become their purchased from Brazil. For example, in 2017 over 55% of soybeans exported to China in 2018 had fallen to 20%.
3. Decreased rate of US exports to China by 34% in 2018 when compared with the previous year.
4. China has started buying record amounts of oil in the United States and renewed in July the maximum mark of 1 billion US dollars, but in August, completely abandoned the purchase of oil to the US and did not acquire it in during September and October.
5. The trade deficit between the two countries has reached new record highs in the past year, although Trump wanted to reduce it. This is due to a high rate of Chinese imports.
Thus, against the background of the new trade negotiations, participants will roar caution and, quite possibly, will give preference to safe-haven assets.
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