By: Azhar Azam
*This is one of my opinion pieces (unedited) that first appeared in "The Express Tribune":
https://tribune.com.pk/story/2098985/6-collapse-threat-phase-one-trade-deal/
The elongating trade war between China and the United States is continuing to bleed the two largest economies of the world and subsequently ushering a slump to the global economy, which is expected report a growth rate of 3% in 2019.
Despite narrowing trade deficit with China, US trade deficit widened $24.8 billion or 5.8% for nine-month period of 2019. Services surplus, the linchpin of the US foreign trade, was downed $20 billion or 10.1% on the back of increased services imports for January-September.
China’s customs also showed that the country’s international trade was contracted by 2.5% for January to October. Although exports were roughly flat at -0.2%, the imports fell sharply by 5.1% year-on-year, to about $1.7 trillion in the first ten months of 2019.
Since weakened Chinese imports ended up in over $92 billion of fewer Chinese imports of goods and services from the world, the decline would drive the global economy to further plunge and increase job losses to the countries exporting goods and services to China.
The flagging Chinese imports epitomized that Beijing has cut its reliance on imported goods and relayed harms to its trading partners. On the other hand, China’s ten-month trade surplus, which soared about 34% to $340.3 billion from last year, showed that its economy remained relatively immune to sustaining significant losses.
Beijing is aware of it falling imports and is therefore actively promoting its innovative China International Import Expo 2019 (CIIE2019) to lift its imports and give an impetus to global trade and economic growth. The responsible Chinese attitude exhibits its readiness to contribute its role as a major global economic stakeholder.
Hassled by the China-US trade war and impelled by vast Chinese market, nearly 200 American companies showcased their products and services in the second edition of CIIE. The American businessmen maintained a cohesive stance that their government should separate politics and business.
American participants of CIIE were increasingly disinclined to endorse the US obsession of intervening China’s Hong Kong affairs and its act of slating Chinese economic model. They were largely of the view that US should not impose their ideology on China.
The businessmen’ sentiments need to be realized and China and the US should step up efforts to wrap up the “Phase One” trade deal. Favorably for the world manufacturers and global economy, the hopes about a potential China-US deal have been piling up every day. However, the rolling back of the tariffs would be crucial for long-lasting and durable trade deal.
On Thursday, Chinese commerce ministry spokesperson Gao Feng urged the sides to simultaneously cancel the tariffs, terming it an important condition for reaching an agreement. White House was also “very, very optimistic” about clinching trade deal to defuse the 16-month trade war nonetheless, Trump Friday remarks “he hasn’t agreed on anything (about tariffs roll back)” could slay the trade talks.
While China has wielded relentless efforts to open up its market for the foreign companies and pledged to increase its imports from the US, it would be extremely inequitable if the Trump administration does not agree roll back tariffs, the root of China-US trade feud.
As tariffs have been the sticking point between China and the US, the promising environment would restore business and investors’ confidence and stabilize global economy. Yet the hawkish elements are in quest of an opportunity to disrupt the trade deal by exploiting tariff cancellation issue.
Pragmatically, the spirit of “Phase One” trade deal was manifestly to annul tariffs slapped by either side, the criticism on rolling back tariffs lacks the nub. Having met all the US preconditions and showing its intent to lift tariffs on American goods, China was inevitably likely to seek US to roll back tariffs.
But the truculent Trump’s aides and opponents are coming up with fierce reproach on China for renegotiating the maiden trade handshake. If the two sides are sincerely committed to sign up a trade pact, they will have to pushback hardcore mentors among themselves, otherwise the hopes to elevate global and the bilateral economies and secure millions of manufacturing jobs would fade briskly.
*This is one of my opinion pieces (unedited) that first appeared in "The Express Tribune":
https://tribune.com.pk/story/2098985/6-collapse-threat-phase-one-trade-deal/
The elongating trade war between China and the United States is continuing to bleed the two largest economies of the world and subsequently ushering a slump to the global economy, which is expected report a growth rate of 3% in 2019.
Despite narrowing trade deficit with China, US trade deficit widened $24.8 billion or 5.8% for nine-month period of 2019. Services surplus, the linchpin of the US foreign trade, was downed $20 billion or 10.1% on the back of increased services imports for January-September.
China’s customs also showed that the country’s international trade was contracted by 2.5% for January to October. Although exports were roughly flat at -0.2%, the imports fell sharply by 5.1% year-on-year, to about $1.7 trillion in the first ten months of 2019.
Since weakened Chinese imports ended up in over $92 billion of fewer Chinese imports of goods and services from the world, the decline would drive the global economy to further plunge and increase job losses to the countries exporting goods and services to China.
The flagging Chinese imports epitomized that Beijing has cut its reliance on imported goods and relayed harms to its trading partners. On the other hand, China’s ten-month trade surplus, which soared about 34% to $340.3 billion from last year, showed that its economy remained relatively immune to sustaining significant losses.
Beijing is aware of it falling imports and is therefore actively promoting its innovative China International Import Expo 2019 (CIIE2019) to lift its imports and give an impetus to global trade and economic growth. The responsible Chinese attitude exhibits its readiness to contribute its role as a major global economic stakeholder.
Hassled by the China-US trade war and impelled by vast Chinese market, nearly 200 American companies showcased their products and services in the second edition of CIIE. The American businessmen maintained a cohesive stance that their government should separate politics and business.
American participants of CIIE were increasingly disinclined to endorse the US obsession of intervening China’s Hong Kong affairs and its act of slating Chinese economic model. They were largely of the view that US should not impose their ideology on China.
The businessmen’ sentiments need to be realized and China and the US should step up efforts to wrap up the “Phase One” trade deal. Favorably for the world manufacturers and global economy, the hopes about a potential China-US deal have been piling up every day. However, the rolling back of the tariffs would be crucial for long-lasting and durable trade deal.
On Thursday, Chinese commerce ministry spokesperson Gao Feng urged the sides to simultaneously cancel the tariffs, terming it an important condition for reaching an agreement. White House was also “very, very optimistic” about clinching trade deal to defuse the 16-month trade war nonetheless, Trump Friday remarks “he hasn’t agreed on anything (about tariffs roll back)” could slay the trade talks.
While China has wielded relentless efforts to open up its market for the foreign companies and pledged to increase its imports from the US, it would be extremely inequitable if the Trump administration does not agree roll back tariffs, the root of China-US trade feud.
As tariffs have been the sticking point between China and the US, the promising environment would restore business and investors’ confidence and stabilize global economy. Yet the hawkish elements are in quest of an opportunity to disrupt the trade deal by exploiting tariff cancellation issue.
Pragmatically, the spirit of “Phase One” trade deal was manifestly to annul tariffs slapped by either side, the criticism on rolling back tariffs lacks the nub. Having met all the US preconditions and showing its intent to lift tariffs on American goods, China was inevitably likely to seek US to roll back tariffs.
But the truculent Trump’s aides and opponents are coming up with fierce reproach on China for renegotiating the maiden trade handshake. If the two sides are sincerely committed to sign up a trade pact, they will have to pushback hardcore mentors among themselves, otherwise the hopes to elevate global and the bilateral economies and secure millions of manufacturing jobs would fade briskly.