Wall Street wants more stimulus from China in the event of a full-blown trade war.
Share to linkedin
“We see limited direct economic impact of a ‘no deal’ scenario in the ongoing trade negotiations in which U.S. tariffs would be fully applied to all Chinese exports,” say BlackRock Investment Institute strategists led by Elga Bartsch, the Institute’s head of macro research. Bartsch and two other strategists said China “has the tools to cushion the impact.”On the same day, Nomura Securities strategists in Hong Kong forecast tariffs on all of China’s exports to the U.S.
“Applications for business investments in Thailand from Chinese companies is up three times from last year,” says Khun Chokedee, the deputy secretary general of the Thailand Board of Investment. Chokedee said the increase in actual, physical applications for a new business occurred over the first four months of the year versus the same period in 2018. “Part of those investment projects are the result of trade disputes,” he says.
Companies still like China, even with the tariffs. While U.S. companies may have to cut costs elsewhere or raise prices for consumers, China is dominant for a number of factors beyond simple economies of scale. China also has better logistics than most lower-cost producers in the neighborhood, and reliable, low-cost energy.
Huawei became No. 1 in less than ten years. Its new smartphone business is less than five years old and has replaced Apple in mainland China. Chinese policymakers are likely to continue to provide economic support across the board, particularly towards favored industries like tech. That gives BlackRock a reason to believe China can handle more tariffs.“Our research on the ground still pointed to confidence in the resilience of the Chinese economy, despite trade talks grinding to a halt,” writes Bartsch.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
BlackRock Thinks China Can Weather Tariffs On EverythingThe BlackRock Investment Institute, the think tank of one of the largest asset managers in the world, thinks China can weather tariffs on everything
Weiterlesen »
BlackRock Thinks China Can Weather Tariffs On EverythingWall Street wants more stimulus from China in the event of a full-blown trade war.
Weiterlesen »
Chinese paper says 'foreign forces' using Hong Kong havoc to hurt ChinaBEIJING (Reuters) - 'Foreign forces' are trying to hurt China by creating chaos in Hong Kong over an extradition bill that has prompted mass protests in the former British colony, an official Chinese newspaper said on Monday. Riot police surrounded Hong Kong's parliament early on Monday
Weiterlesen »
Amid Polarization, Bipartisanship Emerges on China, Big TechIn a time of almost paralyzing partisanship and polarization on just about every subject, it’s easy to miss the fact that on two of the biggest issues of the day—trade with China and new regulation of big tech—there is actual bipartisanship.
Weiterlesen »
U.S. Targets Efforts by China, Others to Recruit Government ScientistsThe U.S. Energy Department has banned its scientists and most contractors from participating in talent-recruitment programs sponsored by China and some other foreign governments after finding that its personnel have been recruited by foreign military-affiliated programs.
Weiterlesen »
More China tariffs could push the US into a 'Trump recession,' CEO saysThe U.S. economy may be pushed into a 'Trump recession' if Washington imposes tariffs on an additional $300 billion worth of Chinese goods, Gary Shapiro of the Consumer Technology Association said at the CES Asia Conference in Shanghai.
Weiterlesen »