China is warning its citizens about traveling to the US this summer, citing damage to the pocketbook from America’s high medical costs as well as personal safety.
It has frequently waged wars against other sovereign countries and made use of the dominant influence of the USA dollar in the worldwide markets to fleece other countries. That has worsened tensions in a fraught U.S.
The ongoing angst over U.S. President Donald Trump’s trade tariffs had extended the recent slide in Asian markets overnight, in particular Chinese shares which are now deep into “bear” market territory.
Wall Street ended the session down in a shortened trading day ahead of Wednesday’s Independence Day holiday, with falls in tech stocks pressuring the market.
“Frankly, I don’t know what action China could take at the moment that would allow the United States to not impose tariffs”, the U.S. source said, adding that there was no evidence the two governments had any substantive engagement at the moment that could lead to the shelving of duties.
Trump has remained defiant, declaring that trade wars are “good and easy to win”, and arguing that the tariffs are necessary for national security and to balance trade deficits.
Stock markets in Europe and the US advanced on Thursday as reassuring economic data from Germany and a report that its big carmakers could be spared from usa tariffs offset another gloomy session for Asia.
Later in the day, traders will also get the minutes from the recent meeting of the U.S. Federal Reserve where it raised rates for a second time this year and flagged that more are likely.
The tariffs target “industrially significant technologies” according to the Office of the United States Trade Representative, many of those related to China’s “Made in China 2025” industrial policy.
“The US has provoked this trade war”. China has threatened to retaliate.
ZTE’s chairman said the April ban over its exports to Iran and North Korea could destroy China’s No. 2 maker of network gear.
The president expressed plans to impose a 25-percent tariff on items from cars to smart home devices imported from China beginning July 6. But that’s unlikely after Trump slapped tariffs on European Union nations and Japan, while also undermining the WTO.
Despite the central bank’s reassurances, “the markets remain very bearish on China. well over and above trade tensions, as waning growth momentum has contributed to diverging economic indicators versus the U.S.”, said Stephen Innes, head of Asia-Pacific trade at OANDA.
Trade data suggest China imported as much as $26 billion worth of integrated circuits past year, according to Kenny Liew of BMI Research. Even Huawei, with a “strong competitive advantage”, still needs some US components. “It would strengthen our ability to sustain the most advanced semiconductor fabs in the United Sates”, Shih said.
Chinese President Xi Jinping invoked this financial commitment at a meeting with USA and European executives in June, telling the room, “We punch back”, according to one person familiar with the discussion. China assembles some 90 per cent of the world’s smartphones, computers and other electronics. This is a country on what it views as a historic mission to become a 21st century economic power, and the contest is just beginning.