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Articles related to "china"


One Frightening Scenario That Could Tank the Dow Despite U.S.-China Trade Hopium

  • On Friday, the global market cheered the completion of a phase one deal between the U.S. and China, leading the Dow Jones Industrial Average (DJIA) to rally.
  • But experts in China say the deal merely represents temporary reconciliation and does not indicate all trade-related issues are resolved.
  • Mei Xiny, an expert close to China’s commerce ministry, told state-owned newspaper the Global Times that accidents could happen during the implementation phase.
  • The ongoing Dow Jones rally is fueled by three fundamental factors: the progress in the trade talks, strong U.S. jobs data and the accomodative stance of the Federal Reserve.
  • The Dow global equity markets are likely to respond with an extended pullback given what they have priced in, if the implementation phase gets delayed like the initial discussions for the phase one deal.

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China welcomes preliminary deal in US-China trade war - Business Insider

  • Chinese experts and news media joined government officials in saying the deal would reduce uncertainty for companies, at least in the short term.
  • The two countries announced a "Phase One" agreement Friday under which both sides will reduce tariffs and China will buy more US farm products.
  • At a late night news conference, timed to coincide with the US morning, the officials said the United States would begin phasing out tariffs on Chinese imports, rather than continue to raise them.
  • China will make similar tariff cuts, the officials said, but they gave no details.
  • The Global Times, a state-owned newspaper known for its nationalistic views, called the agreement a new beginning.
  • It added, though, that both countries are capable of prolonging the trade war, and that they must be willing to compromise if they want to resolve their differences through patient negotiations.

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What the interim US-China trade deal means -- and doesn't

  • The two countries on Friday agreed to halt additional tariffs on nearly $160 billion of Chinese consumer electronics and toys that were set to take effect on Sunday morning, reduce economic penalties on goods that were imposed in September by half and unveil new commitments by the Chinese to buy US farm and other products.
  • Adding uncertainty to the initial agreement was the noted reluctance by Chinese officials to confirm any details offered by Trump, including on $200 billion of purchases of American farm and other products by China.
  • A senior administration official on Friday told reporters that China had promised in the trade pact to increase their purchase of manufactured goods, agricultural goods, energy products and services by at least $200 billion over the next two years, including $40 billion to $50 billion in farm commitments.

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China is cautiously welcoming the new 'Phase One' deal struck with the US, but the trade war is far from over

  • Chinese experts and news media joined government officials in saying the deal would reduce uncertainty for companies, at least in the short term.
  • The two countries announced a "Phase One" agreement Friday under which both sides will reduce tariffs and China will buy more US farm products.
  • At a late night news conference, timed to coincide with the US morning, the officials said the United States would begin phasing out tariffs on Chinese imports, rather than continue to raise them.
  • China will make similar tariff cuts, the officials said, but they gave no details.
  • The Global Times, a state-owned newspaper known for its nationalistic views, called the agreement a new beginning.
  • It added, though, that both countries are capable of prolonging the trade war, and that they must be willing to compromise if they want to resolve their differences through patient negotiations.

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5 Reasons Why US-China Trade Tensions Won't Be Fully Resolved Until 2024

  • A second term for Trump might suggest that U.S.-China trade tensions will finally be resolved.
  • If anything, Trump’s second term could turn out to be another four years of wild market volatility based on Trump’s latest trade tweets.
  • Among the sticky issues that led to the U.S.-China trade war were the trade deficits, the forced transfer of intellectual property, and restrictions facing U.S. businesses seeking entry into the Chinese market.
  • Before the U.S.-China trade war kicked off, Trump got rid of moderate voices in the White House who objected to his approach.
  • Another Democratic party loss in 2020 will deplete the field of rivals as Trump takes on legendary status.
  • Efforts to bring China to heel in his second term would be the perfect way to keep his political instincts sharp and his base glued to the Trump show.

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Why Apple (AAPL) Stock Just Got a Massive Boost Heading into 2020

  • The lack of support for 5G by the iPhone 11 and its high pricing created a difficult environment for Apple’s flagship device to compete against local alternatives like Huawei and Lenovo.
  • An additional $150 tariff on the already marked up price would have made it impossible for Apple to compete in China’s market with the iPhone 11.
  • It has expanded some of its production to China in recent months, especially as orders for the AirPods Pro surged.
  • With potential tariffs on iPhone 11 Pro and Pro Max alleviated and the rapidly rising sales of its AirPods Pro product line, Apple has set itself up for a solid 2020.
  • These products have opened an entirely new market for the company scale into over the coming years.
  • Apple’s positioning in up-and-coming markets like streaming, hearables and wearables could be what replaces stagnant sales of smartphones in the long-term.

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US and China aim to sign phase one deal in January, top Trump trade official says

  • The United States and China hope to sign a phase one trade deal in the first week of January, nearly two years after President Donald Trump launched his trade war, his top trade advisor said Friday.
  • U.S. Trade Representative Robert Lighthizer, one of the lead negotiators in talks with Chinese officials, also told reporters it would still be wise to be skeptical of whether China would deliver on certain agreements.
  • The Trump administration has not promised a future rollback of tariffs, Lighthizer said, adding it would be wise to be skeptical on whether China would deliver on certain agreements.
  • Earlier Friday, Trump and Chinese officials announced that the U.S. and China had agreed to the phase one agreement.
  • China agreed to billions of dollars in agricultural purchases from the U.S., while Trump said he would not move ahead with a new round of tariffs on Sunday, among other items.

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US-China agree to partial trade deal

  • Senior Chinese officials told reporters in Beijing that Washington agreed to cancel a 15 per cent tariff on US$160 billion of goods that was scheduled to take effect on Saturday.
  • In Washington, US Trade Representative Robert Lighthizer told reporters that the deal would be signed in early January.
  • Mr Lighthizer's office said China had consented to "structural reforms" that would improve intellectual property protection and curb the practice of forcing foreign companies to hand over technology as the price of admission to the Chinese market.
  • As for farm products, Mr Lighthizer said China agreed to buy $US32 billion  more of them over two years as part of the phase one trade pact.
  • US Trade Representative Robert Lighthizer told reporters that the deal would be signed in early January.

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The US has signaled China will buy $50 billion of farm goods. But one chart shows they've never come anywhere close to that before.

  • The final terms governing commerce between Washington and Beijing are still being hammered out, but Trump is expected to roll back over time the $360 billion in tariffs on Chinese goods already in place.
  • White House advisers told the New York Times that the Chinese had agreed to buy $50 billion of American agricultural goods as part of the interim deal, particularly soybeans and pork.
  • That would be double the historic rate of the China's purchases of US farm goods, given that China at its peak only bought $25.9 billion of American agricultural products in 2012, according to Labor Department data illustrated in the graph below.
  • In 2018 — when Trump started the trade war — farm exports to China were cut in half from the year before to only $9.2 billion.

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Trump's trade war was a global tax-fest in disguise and tentative deal with China won't change things

  • Other presidents before him, it should be noted, had slapped tariffs on washing machines, but the 2018 levies are important because they marked the beginning of the Trump era of protectionism, which has metastasized into a global tax-fest, hitting Canadian steel, European cheese and, of course, just about everything from China.
  • Forcing the Chinese to buy goods from American farmers might also go some way towards rectifying the still-substantial U.S. trade-in-goods deficit with China, which was the putative point of Trump starting the war in the first place.
  • (Democrats, too, support things like the Farm Bill, which creates a guaranteed market for agriculture through the food stamps program.) It’s more likely that America’s subsidized farmers will ramp up production to meet the terms of the agreement; then, when it ends, either officially or effectively, as it surely will, they will be stuck once again in the familiar trap of overproduction; prices will plummet; the government will subsidize them even more than it does now.

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