US-China trade talks failed again

RISS expert Vyacheslav Kholodkov believes that it would be wrong to consider the US-China confrontation as a usual trade war. "In fact, there is a fierce competition between the superpowers. I would say this is the beginning of the cold war," he pointed out. US Secretary of State M.Pompeo in his London speech recalled that Washington faced with the same threat that came from the Soviet Union in the 20th century. However, unlike the USSR, China was able to integrate into the world economy and developed rapidly.

The analyst believes that the recent US-China trade talks ended unsuccessfully. The Chinese delegation headed by Chinese Deputy Prime Minister Liu He left with nothing: the trade agreement has not been reached, and the next round of talks has not even been appointed. Earlier, Washington introduced additional duties on Chinese goods worth 200 billion dollars. US also intends to introduce duties on goods from China, which are not included in the previous list and are estimated at 325 billion dollars. In that way all Chinese imports to the United States will be taxed.

President Trump says that the new duties will only benefit the US economy, but RISS expert has a different opinion. He recalled that immediately after the failure of the US-China trade talks, the US stock markets fell sharply. The main stock indexes showed a negative growth rate (1,5-2,5%). Some companies' share prices have also fallen. For example, Apple shares decreased by 6%. This also applies to other high-tech corporations associated with China. Pessimism reigns not only among stock speculators, but also American farmers that suffer losses. Their goods exports to China has come to naught this year. In the best years, the US exports of soybeans valued at 12-12.5 billion dollars. Now exports declined to almost zero. This situation has negatively affected the people who supported Trump. The six Midwestern United States are the main producers of soybeans. Now the current President is supported only in the three states. In 2016, Trump won the elections in these six states with a huge advantage.

"Now the US intends to form a united international front against China. They have already warned that if someone buys Chinese technology, US will dramatically reduce the level of intelligence cooperation with this country. I believe that regardless of the trade talks result, US-China relations will worsen," RISS expert underscored. "For example, the U.S. Congress is pushing sanctions against China for alleged human rights violations against the Uighurs in the Xinjiang Uigur Autonomous Region. Moreover, Washington will invent new reasons to impose sanctions against China and tighten the deterrence policy," he concluded.

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