The trade-war game has been under repercussion between China and the US for months. However, it is obvious that China has always denied the trade war but it claims to win if dragged deeply. For China, its currency, Yuan had drastically fallen by 5% as compared to dollar. As, the US has recently imposed tarrifs on the machinery and electronic products of China: at least 25% duties on $34bn-worth. In retaliation, China also follows tit-for-tat practice by imposing tarrifs on American goods on the same amount. The S&P 500, America’s leading index of big shares, has fallen by 5% since late January; the CSI 300, China’s analogue, is down by more than 20% over the same period.
Chinese officials have tried its diplomatic measures to persuade Trump by buying American oil and farm goods. But, Trump showed no signal to break-up the war. Considering this, Lu Zhengwei of Industrial Bank, a Chinese lender, says the staggered way in which Mr Trump is imposing tariffs suggests that he wants to leave room for talks. “It feels like a chess match,” he says.
Shikarpur, July 11.