China's trade growth weathers U.S. tariff headwinds

Trade war US finalizes new batch of tariffs on $16bn of Chinese products

A US-China trade war will reduce global output by 0.7 per cent by 2020, with China's economy taking a 1.3 per cent hit and US GDP dropping 1 per cent, Oxford Economics said in a research note on Tuesday, before the new list was released.

"There is no off-ramp, and Trump has given China little wiggle room to save face and come to the bargaining table", he said.

The office of US Trade Representative Robert Lighthizer said its "exhaustive" investigation showed that "China's acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden US commerce". "Of course, China will retaliate, probably dollar for dollar", Hufbauer said.

All of this adds up to range bound trade over the near-term.

Chinese data on Wednesday showed exports to the USA rose 13.3% in July to $41.5 billion against a year ago.

China's exports to the United States rose 13.3 percent in the first seven months of 2018 from a year earlier, compared with a 13.5 percent rise in Jan-June.

In a sign there may be more difficulties ahead, a private survey last week found that the business outlook among Chinese services firms was the second-weakest on record in July in part due worries about the trade war.




China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from USA companies.

In the meantime, it sought public comment on the new items.

"Although this may for a moment bring preening with delight, it will make it hard to resolve economic imbalances or out of kilter politics and other deep-rooted problems".

John Neuffer, president and CEO of the Semiconductor Industry Association, said in a statement they were disappointed and puzzled why semiconductors remain on the final tariff list.

New American tariffs on Chinese goods now affect $50 billion in annual imports, and there's no end in sight.

Last month, the United States imposed duties of 25 percent on Chinese imports worth $34bn.

And the conflict is likely to escalate: The administration is preparing tariffs of up to 25 percent on an additional $200 billion in Chinese products.

Related news:

Hot News

isis-killer-beheading-video-story-top North Korea foreign minister visits Iran
Aug 09, 2018 - 04:36
The Trump administration will ratchet up pressure on Tehran's economy in early November when US sanctions on Iranian oil are due to snapback.

isis-killer-beheading-video-story-top NASA announces astronauts for SpaceX and Boeing launches from the US
Aug 09, 2018 - 02:11
Cassada, a Navy commander and test pilot, joined the astronaut corps in 2013; the launch will be his first. With delays pushing the test flights for both companies back until at least 2019, there is still time.

isis-killer-beheading-video-story-top Here's what taking Tesla private means for the company and Elon Musk
Aug 08, 2018 - 23:45
Musk owns an nearly 20 per cent stake in Tesla, meaning he'd still need roughly $70 billion in financing to take Tesla private. He said that would allow Tesla to "operate at its best, free from as much distraction and short-term thinking as possible".

isis-killer-beheading-video-story-top Saudi-Canada conflict: Riyadh sells assets, orders patients out
Aug 08, 2018 - 22:58
Inflows slowed in recent years mainly due to low oil prices, but regional turmoil doesn't help, critics of the government say. Still, Rai said the impact on the currency should be "ephemeral" as bilateral trade between Saudi Arabia and Canada is small.

isis-killer-beheading-video-story-top GOP Rep. Chris Collins Hit With Insider Trading Charges
Aug 08, 2018 - 22:50
The New York Republican's son avoided $570,000 (£442,000) in losses thanks to the tip-off, says the indictment . Collins gained prominence for being one of the earliest Capitol Hill backers of President Donald Trump .

isis-killer-beheading-video-story-top Largest wildfire in California history
Aug 07, 2018 - 23:26
How many homes have been destroyed by the Mendocino Complex Fire? "There are also significant terrain hazards for firefighters". It's the largest of eight major wildfires burning out of control across California, and that have claimed the lives of 7 people.

isis-killer-beheading-video-story-top Facebook shares soar as it improves banking relationships
Aug 07, 2018 - 23:11
Wells Fargo said in a statement that "maintaining the privacy of customer data is of paramount importance" to the bank. But they also said they were stepping lightly because of possible customer concerns about data security and privacy.

isis-killer-beheading-video-story-top Wilfried Zaha Wants Chelsea Transfer
Aug 07, 2018 - 22:25
Chelsea play twice before then, including in the Community Shield against title rivals Manchester City at Wembley today (3pm). Everton turned to Watford wideman Richarlison instead, and now Zaha is up for a move across London , where he is settled.

isis-killer-beheading-video-story-top Saudi Arabia appears to threaten Canada in Tweet
Aug 07, 2018 - 22:11
They are involved in a human rights row over Canada's demands for Canadian activists jailed in the kingdom to be released. Saudi Arabia has ordered roughly 15,000 Saudis studying in Canada to leave.

isis-killer-beheading-video-story-top Saudi expels Canadian envoy, recalls its own over 'interference'
Aug 06, 2018 - 16:40
It dismissed Canada's characterization of the activists as "an incorrect claim" and said Canada's attitude was "surprising". Freeland expressed her alarm at Badawi's arrest on Twitter on Friday, calling for the release of both her and her brother.

isis-killer-beheading-video-story-top Charlotte Rae Dead: ‘The Facts Of Life’ Star Sadly Dies At 92
Aug 06, 2018 - 16:30
In April 2017 Rae announced she had been diagnosed with bone cancer after having survived pancreatic cancer seven years earlier. She was Tony-nominated in 1966 for her work in the musical " Pickwick " and in 1969 for the play " Morning, Noon, and Night ".

isis-killer-beheading-video-story-top Bolton Says 'No US Government Involvement' in Maduro Assassination Attempt
Aug 06, 2018 - 15:02
Trump's adviser, John Bolton , says he can state "unequivocally" that "there was no US government involvement in this at all". But three local authorities said a gas tank exploded in a nearby flat, where smoke was seen streaming out of a window.

isis-killer-beheading-video-story-top Willian fails to show for Chelsea training amid transfer talk
Aug 06, 2018 - 14:29
Brazil and Chelsea star Willian has been reported absent from training as rumours of a Real Madrid bid for the player continue to grow .

isis-killer-beheading-video-story-top Brett Kavanaugh Hits Hurdle On Road To Supreme Court
Aug 04, 2018 - 00:52
Chuck Grassley (R-IA) and Dianne Feinstein (D-CA) have been negotiating for weeks about what documents would be requested but ultimately did not reach a consensus.

isis-killer-beheading-video-story-top Large reward offered for information on missing University of Iowa student
Aug 03, 2018 - 23:29
Mollie Tibbetts, a University of Iowa student, went missing after going out for a jog on July 18, 2018. Jack, also 20, said he doesn't believe there's a chance Tibbetts would have left on her own accord.