USA and China to hold trade talks in Beijing next week

US manufacturers say Trump tariffs will bring higher prices, not more jobs

US manufacturers say Trump tariffs will bring higher prices, not more jobs

China and the United States will hold vice ministerial-level trade talks in Beijing on January 7-8, as the two sides look to end a dispute that is inflicting increasing pain on both economies and roiling global financial markets. American officials worry those might erode USA industrial leadership, and complain that China's technological prowess is underpinned by the theft of intellectual property from US firms.

Americans have felt relatively more pain from President Donald Trump's trade war than Chinese consumers and businesses, according to analysts at HSBC. "I hope we're going to make a deal with China". An escalating trade war would make the situation even worse. "I think that there are a heck of a lot of USA companies that have a lot of sales in China that are basically going to be watching their earnings be downgraded next year until we get a deal with China".

Trump repeated that the United States has "taken in billions and billions of dollars in tariffs from China and from others", despite the fact import duties are increasing costs for American businesses and consumers.

Official data this week showed manufacturing has slowed in both China and the United States, though the U.S. Labor Department on Friday reported a surge in new jobs in December along with higher wages.

"There is an inconsistency between the USA acting as a locomotive for the world and the objective of the Trump administration's policy to reduce the trade deficit". The Dow was off 5.6 percent for the year, with the broader Standard & Poor's index of 500 stocks down 6.2 percent.

Other drivers of USA growth, including government and business spending and net exports, are all sagging or expected to do so in coming months.




China's economy has been decelerating since the government pulled back on bank lending a year ago to try to curb a run-up in debt.

The U.S. Federal Reserve's interest rate increases have caused investors to move in and out of various markets, hitting some emerging markets hard.

U.S. factory activity slowed more than expected in December, according to the Institute for Supply Management (ISM). Those ambitions cut to the heart to China's drive to become the world's 21st century economic superpower.

Kevin Hassett, chairman of the White House Council of Economic Advisers, said the contentious U.S.

Wendy Cutler, a former USA trade negotiator, said the US likely can't realistically settle for anything less than an agreement by Beijing to reform how it does business. There are fears of both sides hiking tariffs if no deal is reached.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.