So much for a speedy trade war resolution.
While the U.S. and China have restarted trade talks, a comprehensive deal is still a ways off, if one happens at all. All after China added another member to its negotiating team – Commerce Minister Zhong Shan who is seen as a hardliner.
“The U.S. side has provoked economic and trade frictions against us and violated the principles of the WTO. It is typical of unilateralism and protectionism,” Zhong told the People’s Daily, as quoted by CNBC. “We have to uphold our warrior spirit in firmly defending national and people’s interests in defending the multilateral trading system.”
In short, China may not be in a rush to reach a major deal that addresses the concerns of the U.S. In fact, China may be waiting to see what the results of the 2020 election bring.
While it’s a wait-and-see, the trade war has severely impacted the Chinese economy.
China Posts its Weakest Growth in 27 Years
On Monday, China reported GDP growth of just 6.2% — the slowest in 27 years.
While that was in line with expectations, it was also lower than the 6.4% posted in the first quarter of the year. All as “businesses remain skeptical that the two countries will reach a broader trade agreement and recognize that trade tensions may escalate again,” noted Tom Rafferty, principal economist for China, as quoted by CNBC.
More Tariff Threats are Likely
While tensions have cooled between the U.S. and China, at least temporarily, we could see threats of further tariffs on the latest news. Remember, President Trump could still impose tariffs of another $300 billion worth of Chinese imports.