World trade
China plans for “worst case” in the customs dispute with the USA
Beijing and Washington do not want to give in to the outside in the customs dispute. According to contradicting statements on both sides, the Communist Party meets the economic situation. What does China plan to do?
In the escalated customs dispute with the USA, China’s government wants to prepare their economy and society for a serious situation. The inner circle of power of the prevailing communist party demanded sufficient planning for the “worst case”, as the official news agency Xinhua reported from the meeting of the political office, which headed state and party leader XI Jinping. The basis for sustainable economic recovery must be further consolidated, and China is increasingly faced with “outer shocks”.
Among other things, according to Xinhua, the party cadres called for the economic instruments to further improve in order to stabilize employment and business. Planned political measures should be implemented early. In addition, Beijing considers a relaxed monetary policy and a reduction in interest rates at the “right time”.
Economic performance through more consumption
The report did not give any concrete details about the projects, some of which have already been announced. However, people in the lower and medium -sized income groups should earn more money to increase the weakening consumption in Germany and to also drive the economic engine. Companies affected by the tariffs should receive additional support.
China and the USA continue to fencing a bitter trade dispute. According to contradictory statements on both sides, the important decision -making body of the Communist Party met on ongoing negotiations. US President Donald Trump, who introduced up to 145 percent on goods from China Zölle, spoke of meetings with the Chinese side. Beijing, which reacted with 125 percent tariffs from US goods, denied the claims and spoke of “fake news”.
Reports on customs exceptions
In the case of imports of important technology from the United States, however, the Chinese side seems to be relieved. As several media reported, citing the industry, Chinese customs exposed the serves to certain semiconductors.
It would be a sign of relaxation in the dispute between the two largest economies in the world. China depends on semiconductor technology that comes from technology leaders from the USA, for example. Beijing had ruled out a further increase in its tariffs against the United States, but the export of important raw materials and magnets at the beginning of the month had been heavily regulated.
dpa
Source: Stern
