China Blinks: Ready for ‘Calm Deal’ to End Trade War as Chinese Currency Plummets
Told ya’ so. And there was never any doubt. After Trump’s latest round of retaliatory tariffs rocked Asian markets on Monday and sent the Yuan reeling, China indicated a near immediate softening of hardline stance in the 40-year trade war with the United States, indicating a desire for a “calm end,” to a war of dueling tariffs and market blockades that have had disastrously disproportionate impacts on Chinese economic fundamentals that betrayed an inability by Beijing to sustain continued scorched earth economic fisticuffs with the Trump administration. The white flag has been waved by Beijing.
Speaking from the G7 economic summit in Biarritz, President Donald Trump said candidly that “Beijing had called begging to make a deal,” after his latest round of tariffs on $550-billion in goods had sent shockwaves through the Asian market.
“I have great respect for the fact that China called and they want to make a deal,” Trump said, indicating that he had discussions with China’s Vice-Premiere, Liu He, about resuming trade talks with an eye toward a swift “calm negotiation,” to normalize trade between the world’s two economic superpowers.
Observers are cautiously hopeful that Beijing’s rising desperation to reach an agreement will at long last bear fruit, after earlier talks that seemed destined for resolution suddenly stalled after visits with Chinese officials by both Barack Obama and John Kerry, in what many saw as nothing short of sabotage to prevent an expected explosion of growth and optimism in American markets expected to be delivered by a Trump deal with Beijing that will be an unprecedented change in trade footing with the world’s largest marketplace.
U.S. Treasury Secretary, Steve Mnuchin confirmed China’s interest in returning to the bargaining table quickly, saying, “There were discussions that went back and forth, let’s leave it at that.”
News of Beijing’s renewed receptiveness to trade talks calmed market turbulence worldwide.
WHAT CHINA HAS SUFFERED IN THE TRUMP TRADE WAR:
- 3-million jobs lost
- Debt-to-GDP ratio increased from 40% in 2015 to 530% in 2019
- Lowest economic growth rate in 50 years
- Two credit ratings downgrades by central banks for increased debt load
- Yuan-RMB valuation at lowest value in 27 years
- 20% rise in food costs because of lost U.S. exports
- Imported rice from United States for first time in modern history