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SEPTEMBER 25, 2018
China is playing for Midterms which they will change big time if Republicans win. The worlds two biggest economies are digging in for what could be a long and bruising trade war, testing the resilience of the strongest global upswing in years. The Trump administration just after midnight on Monday slapped tariffs on $200 billion in Chinese goods. China responded with duties of its own on $60 billion in U.S. products. The Chinese government also called off planned talks with U.S. officials as the consensus grows in Beijing that substantive discussions will only be possible after U.S. midterm elections in November, according to people familiar with the matter. U.S. stocks fell as investors faced the grim reality of a protracted trade war between the two powers.
Ignoring the warnings of business leaders and economists, President Donald Trump isnt backing down from his plan to confront China over what he argues are its unfair trading practices and abuse of U.S. intellectual property. Chinese President Xi Jinping is refusing to bow to U.S. aggression, preparing stimulus measures to cushion the impact on the Chinese economy. China will lose any trade war with the US.
The hardening rhetoric is increasingly giving way
to actions that are hurting the world economy, Fitch Ratings said in its
latest global outlook. The trade war is now a reality, Fitch chief economist
Brian Coulton said in the release. The ratings firm downgraded its world
growth forecast for 2019 by 0.1 percentage point to 3.1 percent and warned
of further downside risks.