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.
2020-08-01 07:28:00 Saturday ET

Technological advances, geopolitical risks, and pandemic outbreaks cannot shake investor confidence in the American dollar as the global reserve currency.
2017-11-07 09:38:00 Tuesday ET

HPE CEO Meg Whitman has run both eBay and Hewlett Packard within Fortune 500 and now has decided to step down after her 6-year stint at the technology giant
2019-11-07 14:36:00 Thursday ET

America expects to impose punitive tariffs on $7.5 billion European exports due to the recent WTO rule violation of illegal plane subsidies. World Trade Org
2022-08-30 10:32:00 Tuesday ET

The financial services industry needs fewer banks worldwide. As long as banks have existed in human history, their managers have realized how not all dep
2019-06-11 12:33:00 Tuesday ET

Dallas Federal Reserve Bank President Robert Kaplan expects the U.S. economy to grow at 2.2%-2.5% in 2019-2020 as inflation rises a bit. In an interview wit
2020-05-05 09:31:00 Tuesday ET

Our fintech finbuzz analytic report shines fresh light on the fundamental prospects of U.S. tech titans Facebook, Apple, Microsoft, Google, and Amazon (F.A.