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The President of the United States, Donald Trump, has no intention of defusing trade tensions with China, according to Axios citing three unknown sources familiar with his private conversations, saying that it would take more time to do so. so that "the Chinese leaders feel more penalized by its tariffs".
According to Axios, a source reportedly told them that Trump "wanted them to suffer more" customs duties, believing that the longer his rights last, the more weight he would have in trade negotiations.
The US government has already introduced tariffs ranging from 10% to 25% on Chinese goods entering the United States worth $ 250 billion. Similar tariffs were introduced by Chinese decision-makers on US products entering the country, but on a smaller scale.
Another source told Axios that the trade war between protagonists was only "beginning of the beginning", suggesting that it was unlikely that the conflict would be resolved despite the prospect of a meeting between Trump and the president. Chinese Xi on the sidelines of the G20 summit. in Buenos Aires in November.
"It's a meeting of heads of state, not a business meeting," an informed source told Axios.
"Trump thinks of this meeting as a personal reconnection with President Xi, and not as a meeting that will evolve into detailed discussions," said a source. "The parties are very far away from one another … for the moment, there is no common basis for proceeding.
According to the report, Trump has expressed a keen interest in the liquidation of Chinese shares this year. The Shanghai Composite Reference Index has lost more than 30% since the peak reached late January, boasting the size of the index. decline observed since trade tensions between the two countries began to intensify.
According to some sources, Trump thinks it could put pressure on Chinese decision-makers to return to the negotiating table.
"The generic point that Trump poses to assistants, according to a source with direct knowledge, is that" we are strong and they are weak, "" said Axios.
On Friday, Chinese policymakers announced a series of new measures to support the stock price, along with similar measures taken in 2015 and 2016 to help bring an end to the plunge in equities. time.
In parallel with the recent fall in Chinese equities, economic growth in China has slowed to 6.5% from January to September, according to the latest figures released by the National Bureau of Statistics (NBS), the result the lowest recorded since the GFC.
"The main driver of this slowdown has been the Chinese industrial sector, which has experienced the slowest growth ever recorded, due to deleveraging, pollution control and trade tensions with the United States." said Gerard Burg, Senior International Economist at the Conference. Australian National Bank.
However, while the impact of the trade war may have contributed to the moderation of Chinese economic activity over the past year, Burg explained that China's trade surplus with the United States – instead of being reduced – had reached the highest level ever recorded.
"The impact of US tariffs has not yet manifested in the outbound trade data, and Chinese exports have increased 14 percent in one year," he said.
"In contrast, Chinese imports from the United States fell 1.2% year-on-year, which may reflect the impact of China's retaliatory tariffs.
"As a result, China's trade surplus with the United States has continued to grow, reaching $ 307 billion over the twelve-month period ending in September, a new record."
The Axios report has been widely cited on social media platforms such as Twitter and could contribute to a slight weakening of investors' risk appetite observed early Monday morning in Asian trade.
The full Axios report is available here.
