January 28, 2023

Trade War Saga: China will not hit USA first > Highlights

Trade War Saga

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The tit-for-tat trade war saga has hit market sentiment in recent weeks. It is now at its peak as the deadline of the 6th of July is fast approaching.

The US President has announced that US would implement tariffs on $34 billion of Chinese imports on July 6.  The Chinese administration has affirmed to respond accordingly on the same day.

Despite previous rumours for the opposite China will “absolutely not” fire the first shot in a trade war with the United States. China’s finance ministry stated on Wednesday that his country will not be the first to levy tariffs.

China’s currency soared against the dollar on Wednesday, after the central bank assured markets it would keep the currency stable.

Chinese Markets stay on the ball as the deadline for tariffs imposition on Chinese exports by the United States approaches. China is expected to fight back US tariffs, especially those regarding the technology firms.

Moreover, according to Reuters, China is putting pressure on the EU to issue a joint statement against the US President’s trade policies.

IN OTHER NEWS (apart from Trade War Saga)

UK economy gains speed as Britain’s large services industry grew last month at its fastest rate since October according to a survey published on Wednesday. This gave rise to hopes that BoE may raise interest rates next month.

Britain’s economy slowed sharply in the first three months of this year due to unusually harsh weather, high inflation and deep uncertainty about Brexit. The slowdown caused the BoE to postpone raising rates in May.