Many analysts are looking at the disaggregated July US imports from China because changes in the July importation figure of the affected items are the first tangible data points of how the Chinese exports to the US have been affected.
In the past few months, US-China relations have sunk to a state somewhere between frosty and hostile. This marks a major change since President Trump visited China in November 2017. There are several reasons for this.
North Korea’s economy suffered a negative growth of 3.5 percent in 2017, its worst setback in a decade. The disagreement with the US over its denuclearization process could delay the lifting of sanctions, while China-US competition in the Korean Peninsula may add additional uncertainty.
Malaysian Prime Minister Dr Mahathir Mohamad visited Beijing from August 17-21, 2018, with the aim of seeking understanding from his Chinese hosts that his government needs to re-adjust Malaysia’s financial situation.
Turkey’s currency dropped by 1/5 of its value against the US dollar on August 10, 2018. One of the most significant rescue packages came from Qatar which came up with USD 15 billion worth of investments for Turkey.
The incoming Imran Khan government of Pakistan will ask the IMF for a USD 12 billion bailout package, highlighting the new economic reality facing some Belt and Road Initiative participating countries and the need to formulate new rules governing the program.
China used more than 45 percent of global semiconductor production, and it only makes 15 percent of worldwide semiconductors locally. The country ran a trade deficit of USD 193 billion in 2017 on semiconductor trade.
In 2016, the Chinese government provided over RMB 33 million for the Pilot Project for Poverty Reduction Cooperation in East Asia which is based on technical and financial support from China for the specific purpose of poverty alleviation in Laos.
The Juncker-Trump agreement is perceived by some analysts to be a game-changer, signaling that the US is forming a new US-centric world trade order on a bilateral basis excluding its perceived adversaries such as China.