Any slowdown in China’s economy will mean less demand for Aussie goods and services. And China is our largest export partner.
But US President Donald Trump has been subtly signalling he may be ready to make ‘a great deal’, while he continues to threaten imposing broader tariffs. And Chinese President Xi Jinping cannot afford any more headwinds to China’s already slowing growth.
With that in mind, a deal looks more likely than most mainstream sources are reporting.
G20 meeting could finish the trade war
As RAW reports, China is gunning for the G20 summit in Argentina to be the place where the trade dispute is finally resolved. The commerce ministry wants ‘positive results’ to come from a highly anticipated meeting between Chinese and US leaders.
Saturday will be the day that Trump meets with Chinese President Xi Jinping on the sidelines of the summit. Trade discussion is high priority on the agenda.
The Chinese ministry’s spokesperson, Gao Fang said both nations’ economic teams were in cahoots over a phone call this month, attempting to reach a ‘consensus’ to prevent this meeting resulting in Trump’s tariff threat being imposed.
Gao Fang said in the lead up to the meeting:
‘I hope that the United States and China could move towards each other and work hard to achieve positive results in the meeting.’
And this certainly looks possible. White House officials have said as recently as this week that Trump is open to making a trade deal with Xi when they meet.
And if Xi has his wits about him, he won’t say no to the arrangement.
Why China can’t withstand any more trade tension
The US have already levied duties of 10–25% on US$250 billion of Chinese goods this year. This was served as a punishment for what the US deem as China’s unfair trade practices. The currently imposed 10% tariffs were in line to climb to 25% in 2019.
Statistics show China hasn’t been able to combat the strain on their economy. A Reuters poll conducted this week revealed China’s factories failed to grow through October to November. This was due to lowered domestic demand thanks to their clean up act, and the tariff threat preventing new orders from coming in.
‘The Chinese side has repeatedly stressed that the essence of Sino-US economic and trade co-operation is about mutual benefit and win-win,’ Gao said. And clearly this hasn’t been the case.
Even Trump has admitted this trade tension is rubbing him the wrong way. In a Twitter post on Thursday, he lashed out at his fellow Americans, stating:
‘Billions of Dollars are pouring into the coffers of the USA because of the Tariffs being charged to China, and there is a long way to go. If companies don’t want to pay Tariffs, build in the USA.’
It seems both sides are ready for the end of this trade war…and that’s something the mainstream media isn’t revealing.
They’re too busy trying to pick a winner, when really, the winner is simply its end.
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