2018-07-13 09:41:00 Fri ET
technology antitrust competition bilateral trade free trade fair trade trade agreement trade surplus trade deficit multilateralism neoliberalism world trade organization regulation public utility current account compliance
Yale economist Stephen Roach warns that America has much to lose from the current trade war with China for a few reasons. First, America is highly dependent on China as a key source of low-cost products and services. As America increases its trade bets and tariffs on $200 billion imports from China, most U.S. households and firms would face higher costs due to inflationary concerns.
Second, the Chinese government holds huge dollar amounts of U.S. Treasury bills and notes. These investments help finance the perennial U.S. budget deficit. Third, erecting tariffs, quotas, and even embargoes may isolate America from the OECD free trade bloc. In turn, U.S. economic output expansion and employment growth may slow down as a result. For these reasons, America has much to lose from its current trade conflict with China.
In contrast, Mohamed El-Erian, chief economic advisor of Allianz, suggests that America is in a much stronger position to win the trade war against China. Further, it is crucial for America to protect its IT-driven intellectual property rights with better patent, trademark, and copyright enforcement. Chinese regulatory agencies have been notorious in requiring U.S. corporations to set up data centers and IT science parks in some major cities in China. In effect, this regulation transfers many patents and IT solutions from America to China.
The U.S. Trade Act Section 301 investigation hence concludes that it is opportune for the Trump administration to impose punitive tariffs on Chinese imports. Global stock market investors may suffer some short-term losses due to this relentless Sino-American trade conflict.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-06-30 12:37:00 Sunday ET

AYA Analytica finbuzz podcast channel on YouTube June 2019 In this podcast, we discuss several topical issues as of June 2019: (1) Federal Reserve h
2018-01-01 06:30:00 Monday ET

As former chairman of the British Financial Services Authority and former director of the London School of Economics, Howard Davies shares his ingenious ins
2022-05-30 09:32:00 Monday ET

The new semiconductor microchip demand-supply imbalance remains quite severe for the U.S. tech and auto industries. Our current fundamental macro a
2019-08-04 08:26:00 Sunday ET

U.S. and Chinese trade negotiators hold constructive phone talks after Presidents Trump and Xi exchange reconciliatory gestures at the G20 summit in Japan.
2019-08-09 18:35:00 Friday ET

Nobel Laureate Joseph Stiglitz maintains that globalization only works for a few elite groups; whereas, the government should now reassert itself in terms o
2018-06-17 10:35:00 Sunday ET

In the past decades, capital market liberalization and globalization have combined to connect global financial markets to allow an ocean of money to flow th