atans1

Cybernuts’ Guide to Trump pak China

In China, Economy on 26/03/2018 at 4:48 am

Summary: Be happy because global trade will suffer and thus S’pore very dependent on global trade (Why S’pore’s growth is so gd this year) will suffer.

Chief cybernut, Oxygen, already sending out invitations to his “PAP will collapse soon” party

Alternative view from EDB: Really? “Singapore Says Asian Growth Helps Offset U.S. Trade Threat”(From early last year)

From NYT’s Dealbook

Will the U.S.-China trade fight be a flicker or an inferno?
They’re here. President Trump imposed $60 billion worth of tariffs and penalties on Chinese goods. China is threatening tariffs on $3 billion worth of U.S. goods like nuts, wine and pork. Now S.&P. 500 futures and markets in Asia and Europe are down this morning, following yesterday’s steep sell-off (which was driven in large part by Boeing).
The context: Mr. Trump has made subtext — China is the U.S.’s main economic rival and must be treated as a strategic competitor — text. Few in the U.S. are happy with Beijing’s trade and intellectual property policies. But the world is now watching to see whether the fight turns out to be a spat, or a prolonged and damaging conflict.
Peter Eavis’s take: A trade fight that eventually relaxes some of China’s disadvantageous conditions could bolster the long-term prospects of U.S. firms. And if the U.S. is able to recruit other countries to its cause, China may relent. Still, much could go wrong.
On the other tariffs: The E.U. is still waiting for confirmation of exemptions from the imported metals tariffs. They may get quotas instead. Meet Century Aluminum, the tiny manufacturer that pressed for those penalties.
Critics’ corner
Stephen Gandel of Gadfly writes, “Trump’s tariffs and especially his protectionist rhetoric threaten to cut more and more of the world off.”
Paul Krugman writes, “America has much less trade leverage over China than Trump imagines, and a trade war with ‘China’ will anger a wider group of countries, some of them close allies.”
The WSJ editorial board writes, “A rising and aggressive China poses considerable risks to world order, but persuading its leaders to conform to trading norms requires more than scattershot tariffs.”

 

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