FORUM Finance

Jan 18 2019

Is it possible to negotiate with the Chinese?

The other day, China issued a fresh batch of statistics on its economy, to be more precise on its trade balance. The results are interesting because the trade war between the Middle Kingdom and the States can go into a very acute phase and bring down global markets. Now it’s important how Trump will respond to everything, and as you know, one of his tweets is enough … 

Last December, China reduced purchases of American goods by 35.8%! This is the maximum value in recent years. That is, the Chinese have practically closed their market for American goods. 

As you know, Trump is trying to ensure that trade goes on an equal footing, bash bash. As far as amers buy Chinese consumer goods, the Chinese should buy American goods for the same amount. 

But we must understand that such a proposal does not suit China in principle. Why should they buy something if they can produce almost everything themselves? Moreover, why pay big money for it? So it will be very difficult to agree … 

The United States and China should reach an agreement on equal trade until March of this year. But any agreement can be easily violated … 

Therefore, it is very important now what the American side will undertake. And if trade duties against China are introduced, it will hurt the entire global economy. And they can do it at any time! 

Trade relations between China and Russia look completely different. Here is the balance in our favor. We sell our hydrocarbons more than we buy all kinds of Chinese products. And here it would be glad. But… 

According to other statistics, Chinese business withdraws its capital from Russia. And those huge joint projects that were announced together with China were postponed indefinitely. The Chinese do not intend to invest big money in the Russian economy. And here, too, agree very problematic. China does not need a strong and developed Russian economy, it’s a ready-made competitor … 

But let’s think about the future. Today, China has closed its market for American goods, and tomorrow it can close its market for Russian goods. And it can be painful. 

How was it said that Russia has only two allies …?)

Written by admin


2 responses to “Is it possible to negotiate with the Chinese?

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