Tensions in trade relations between the US and China
Dear traders,
Investors remain apprehensive over the exchange of increasingly harsh statements in the trade conflict between the US and China.
On Friday, US President Donald Trump warned that he was ready to impose duties on all imported goods from China worth $ 500 billion. This could cause an escalation of the trade conflict between the two leading economies of the world.
Washington and Beijing approached the trade war after several rounds of negotiations, as a result of which it failed to eliminate the US claims to China’s industrial policy and the lack of access to the Chinese market. The negative balance of trade between the US and China is $ 375 billion, according to the latest figures.
The US has already imposed duties on Chinese goods in the amount of $ 34 billion, and duties for another $ 200 billion are in preparation. In response, China imposed duties on US goods, too, for $ 34 billion.
On Friday, US Treasury Secretary Stephen Mnuchin said that the United States was monitoring the decline in the RMB exchange rate and would analyze the reasonableness of this decline.
The statements made by Munchina increased the likelihood that China will again be accused of manipulating the exchange rate for the first time since the beginning of the Trump administration in 2017.
Since the end of the last quarter, the value of the yuan has fallen by 7.5% against the dollar. This reinforces rumors that the Chinese authorities deliberately weaken the exchange rate of the national currency in order to compensate for the introduction of US trade duties and increase the competitiveness of their goods. (Investing.com)
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