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.
2018-08-05 12:34:00 Sunday ET

JPMorgan Chase CEO Jamie Dimon sees great potential for 10-year government bond yields to rise to 5% in contrast to the current 3% 10-year Treasury bond yie
2019-08-16 17:37:00 Friday ET

Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data. The European Commission probes into whether Amazon uses key third-par
2019-12-01 10:31:00 Sunday ET

Goop Founder and CEO Gwyneth Paltrow serves as a great inspiration for female entrepreneurs. Paltrow designs Goop as an online newsletter, and this newslett
2019-04-01 08:28:00 Monday ET

OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes. OraSure extracts core genetic information from microbiome s
2019-07-05 09:32:00 Friday ET

Warwick macroeconomic expert Roger Farmer proposes paying for social welfare programs with no tax hikes. The U.S. government pension and Medicare liabilitie
2022-09-15 11:38:00 Thursday ET

Capital structure choices for private firms The Kauffman Firm Survey (KFS) database provides comprehensive panel data on 5,000+ American private firms fr