The United States and China trade deal ends March 1. Kevin Hasset White House economic adviser said; “it remained to be seen how much progress has been made in U.S.-China trade talks but that U.S. President Donald Trump still hoped to make a deal by the March 1 deadline.”
Increase tariffs on Chinese goods; if the two sides fail to make progress it said; “Asian countries are likely to suffer most from protectionism,” The comments followed a report by a UN trade agency on the impact of the US-China trade war. The United Nations Conference on Trade and Development leader Pamela Coke-Hamilton says, “The implications are going to be massive. The implications for the entire international trading system will be significantly negative.”
Exactly how much progress we made last week and how much progress we’ll make when Treasury Secretary Mnuchin, and Ambassador Lighthizer head off to China is something; “we’re still waiting to see,” Hassett, told CNBC in an interview referring to the head of the U.S. Department of the Treasury and the U.S. trade representative.
Regardless The United States economy seems to be strong with 4 million jobs created since the election, and the economy has grown last quarter 4.2 percent. China’s economy has taken a hit as a result of the ongoing trade tensions.
The Wall Street Journal wrote:
“rising asset impairments and declining profits within China’s private-sector companies. 395 companies listed on the Shanghai and Shenzhen stock exchanges have provided guidance that they expect to report net losses for 2018.”
As China’s export-economy slows, China has initiated steps to encourage consumers to increase their spending with the intention of boosting the economy. Unfortunately, most such measures have not worked out as intended. The Chinese consumer, a previously reliable driver of economic growth, is under stress, threatening to deepen a broad slowdown in China’s economy that is rattling global markets.