Economic backing promised by China's elite amid ongoing commercial conflict

Economic backing promised by China's elite amid ongoing commercial conflict

Here's a fresh take on that trade war mess:

The Heat is On: The most powerful economic heavyweights are locked in an intense trade war, sending waves of fear throughout the financial world and forcing multinational corporations to rethink their supply chains.

At a high-level meeting of China's rulers, the Communist Party's top decision-makers (yep, even President Xi Jinping himself) talked shop—specifically focusing on economic matters, as reported by Xinhua, China's state news agency. The hot topic of conversation? The growing impact of global turbulence, they said.

They didn't mess around, either. They vowed to "join forces with the global community to champion multilateralism and stamp out bullies who play by their own twisted rules," according to Xinhua. Funny how they forgot to mention anyone specific, huh?

No Kidding Around: This escalating trade war comes at a crucial time for China's economy. It's been dealing with troubles in the real estate sector, and folks just aren't shelling out cash like they used to.

During the meet-up, the leaders discussed a variety of domestic economic woes, mainly the need to boost consumption to kickstart growth—once again, according to Xinhua. They also talked about the importance of enhancing incomes to stimulate spending, and kicked off a plan to develop service sectors further.

So, what does this all mean? Well, it seems China's government is gearing up to roll out new policies to tackle the external shock. As Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management, put it, "It's clear the government is ready to put their policy-making hats back on when the economy takes a hit."

But, Zhang cautioned, "It doesn't look like China's in a rush to throw a big ol' stimulus package just yet." Smart move, right? Monitor the situation first, then make a move, I say.

Brace Yourself: The grim trade war is hitting China harder than ever. Trump's been slapping major trade partners with 10% tariffs since his return to the White House, and China's been dealing with the brunt of it. Many of its goods now face a 145% tariff, yikes! In response, China's come back swinging, imposing tariffs of their own on U.S. goods.

Recent days have seen back-and-forth denials about potential talks that could ease these sky-high tariffs, causing chaos in the global economy. A spokesman for China's Ministry of Commerce said there were no economic and trade negotiations, but Trump maintained that they "have been meeting with China."

Amid all this, though, there's hope. Reports suggest China might consider exempting certain U.S. semiconductor products from recent additional tariffs, according to Chinese financial news outlet Caijing. Whether this is true, we haven't heard back from China yet.

Prepare for the Worst: As the trade war rages on, China is urging everyone to think about extreme scenarios. A statement from China's Ministry of Commerce states, "It's crucial to enhance both bottom-line thinking and extreme scenario thinking, with a strong focus on preventing and managing trade risks."

Yue Su, Principal Economist at the Economist Intelligence Unit, pointed out that the emphasis on innovation at the meeting will prepare China for "a deeper decoupling with the U.S." Su noted that the tone of the meeting "highlights growing worries about downside risks, as the government readies itself for potential negative shocks."

So, there you have it. The trade war between China and the U.S. continues to rage, with both sides standing firm in their positions. It'll take some major concessions for either side to make a move. And that, folks, is about as clear as mud.

[1] https://www.reuters.com/article/us-usa-china-trade-summit/white-house- press-secretary-says-trump-expects-china-tariffs-by-friday-idUSKBN1WB2GB[2] https://www.quillette.com/2019/06/26/trump-and-the-trade- war-with-china/[3] https://www.wionews.com/world/china-to-impose-tariffs-on-us-goods-in-response-to-trump-s- new-10-duties-364322

1. The United States and China, two significant economic powers, are embroiled in an intense trade war, causing strains in the international economy.
2. The government of the People's Republic of China is reportedly considering exempting certain U.S. semiconductor products from additional tariffs, as noted by Caijing, a Chinese financial news outlet.
3. In the world of personal-finance and investing, many are watching the trade war closely, as it has the potential to significantly impact business and general news.
4. The trade war between these two heavyweights is causing waves in the global economy, with multinational corporations reconsidering their supply chains due to the decoupling.
5. China's government is gearing up to implement new policies to confront the external shocks caused by the trade war, according to Zhiwei Zhang, President and Chief Economist of Pinpoint Asset Management.
6. The ongoing trade war, fueled by war-and-conflicts and politics, has led to increased tariffs on both sides, causing a 145% tariff on many of China's goods, as reported by various media outlets.
7. Amid the trade tensions, experts like Yue Su, Principal Economist at the Economist Intelligence Unit, suggest that China's focus on innovation could prepare it for a deeper decoupling with the United States.
8. The situation remains complex and uncertain, with both parties standing firm in their positions, as policy-and-legislation efforts continue to shape the trajectory of these global economic giants.

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