Recently, China’s state-run media outlets have emerged out in force subsequently keeping relatively quiet after the U.S. President Donald Trump’s revelation of tariff increases on Chinese goods. Whether it’s the national television broadcaster or the representative of the Communist Party, the latest explanation radiates assurance on China’s capability to rise to the U.S. In a situation of tight administration control of what communications are allowed to surface, the move can shed light to what Chinese leaders believe about the long trade negotiations. Scott Kennedy—Director of the Project on Political Economy and Chinese Business at the CSIS (Center for Strategic and International Studies)—said, “I expect it was commanded by the top management to forward the account of the U.S. as intimidating and China as a victim.”
Kennedy further added, “Putting the discussions in broader standard terms gives Beijing leverage but it also makes it tough for both parties to unemotionally find common ground.” The two largest economies globally have been involved in a trade spat for over a year. While Trump has aimed at the U.S. trade deficit with China, problems include complaints that Beijing has promoted an uneven playing field with the claimed forced shift of technology and a lack of IP (intellectual property) protections.
On a similar note, the latest data illustrated slowing in the U.S. and China economies since trade war escalated. The industrial and consumer activity in the U.S. and China declined in April, even prior to the global two largest economies entered the new phase of an escalating trade war that can take a bite out of worldwide growth. Marc Chandler—Global Market Strategist at Bannockburn Global Forex—said, “The actual message at the moment is that the economic data from China and the U.S. have disappointed.”