A 20 minute video discussion worth watching with a China USA trade expert discussing the trade war.
YouTube
A few key takeaways.
1). At the G20 meeting in Japan this summer President Trump and Chinese Premier Xi agreed that China would buy US agricultural goods in exchange for US corporations being allowed to trade with Huawei for 90 days. Unfortunately, the Chinese reneged on their part of the deal (no agricultural purchases) while the US allowed Huawei to trade.
Just this week President Trump extended this trade window for a second 90 days and China is still not buying US agricultural products.
This makes the US look very weak and indicates a faltering commitment by Trump on the trade war.
Furthermore,as an indirect concession that the trade war does hurt US consumers, President Trump has declared that many consumer electronic products manufactured in China will be exempt from a new 10% trade tariff starting Sept 01 until Dec 15th so as not to impact the US consumer in the critical shopping days before Xmas.
2). 5G Networks and advances are critical for future global leadership in all of the advanced economies of the world. The USA is ceding China this leadership when it becomes OK to trade low value agricultural primary goods for finished high value technology products from China.
3). The USA trade war is very unlikely to be resolved until well after the 2020 USA elections. A real siege mentality has permeated the Chinese leadership as their economy begins to slow and at some point may risk recession.
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