“China’s economy cooled in the fourth quarter under pressure from faltering domestic demand and bruising U.S. tariffs, dragging 2018 growth to the lowest level in nearly three decades and pressuring Beijing to roll out more stimulus to avert a sharper slowdown,” Reuters reports.
“Growing signs of weakness in China — which has generated nearly a third of global growth in recent years — are fueling anxiety about risks to the world economy and are weighing on profits for firms ranging from Apple to big carmakers,” Reuters reports. “Policymakers have pledged more support this year to reduce the risk of massive job losses, but have ruled out a “flood” of stimulus like that which Beijing has relied on in the past, which quickly juiced growth rates but left a mountain of debt.”
“‘The government has means to support the economy. They can expand infrastructure spending and they can cut banks’ reserve requirement ratio. So we don’t need to worry about capital spending,’ said Naoto Saito, chief researcher at Daiwa Institute of Research in Tokyo. ‘But the problem lies in consumption,'” Reuters reports. “U.S. President Donald Trump said on Monday that economic indicators meant it was time for China to make a trade deal with the United States.”
China posts slowest economic numbers since 1990 due to U.S. trade tensions and new policies. Makes so much sense for China to finally do a Real Deal, and stop playing around!
— Donald J. Trump (@realDonaldTrump) January 21, 2019
Read more in the full article here.
MacDailyNews Take: Hopefully a U.S.-China trad pact is coming sooner than later!
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
China actually uses the opposite financial politic the the US. Instead of folding on itself, it makes a lot of contacts all around the world. This slow down will hurt USA much more than China.
China is slowing down becasue the US economy is not solid regardless of the unemployment numbers. People just have two or more jobs and are moving back home.
A strong economy doesn’t have thousands of stores closing down every year for the last ten years and counting. Those workers are not spending.
The US auto industry is due to eliminate thousands of jobs by the end of 2019. Those workers are not spending.
The shutdown removed 800K consumers from the market during the peak of holiday season and all of Jan. 2019. Those workers are not spending.
The fourteen million people on food stamps will be paid for Feb. benfits but after that its all bets off. Those workers are not spending.
BJR001- interesting points if they were accurate and not just half truths…..
800k consumers were not removed from the economy during the holiday season as the shutdown happened after the xmas holiday. additionally when the government opens back up they will be paid all their back pay which will trigger them into immediate spending wherever they may have lapsed.
thousands of stores closing has nothing to do with the economy and more to do with the lack of agility and innovation in these stores. As ecom aspires to great heights those stuck in the past will falter.
Of the 14million on food stamps how many of them actually work? Additionally if on food stamps how much are they contributing to the economy because my guess is they are a drag on the economy whether the government is shut or not.
this all being said while i agree the government being shutdown is a negative thing…. to attribute the economy being not strong to this is a farce. The idea of china not being impacted by the US feud is BS. They count on us for over 40% of their exports and incase you only read CNN or fox news or MSNBC the damage done by forced technology transfers to china is 100x greater in the long run than any short term economic imbalance caused by the US not rolling over and taking it from the Chinese like we have for the last 20 years.
My chinese coworkers in china tells me it’s part tariff, and part govt crackdown on freedom.
With censorship, people are becoming more and more distrusting of the govt, and are afraid for their future, so they’re not spending.
Is America great again yet?
By now the administration’s incompetence should be obvious to all. The actions of this belligerent administration do not honor the will of the people and are doing nothing to further US power or relations abroad. What should be a continuation of peacetime growth is now being strangled by a petulant asshat who would rather kill the US economy than compromise on a budget. World’s greatest dealmaker, my ass.
MIke interested to know what compromise has been offered? I have not seen one except from the WH to the DEMS in the form of DACA protection and Extended visas etc in return for the wall. Whether you believe in the wall or not i don’t care but when this most recent middle ground was proposed before it was even offered out there Pelosi and others came out before they even heard the framework and said they were not interested. That said the only option offered by the dems is a stop-Gap measure which buys a few weeks so we can do it all again in February. So dont sit behind your electronic podium and spew straight BS to prop up your cause at least lay the facts and let people make their own educated decision.
As far as furthering interests abroad i am interested in how the below were bad things:
-Renegotiation of nafta to make it more equal for all 3 nations
-Summit with North Korea for the first time in like 30 years
-Forcing china to acknowledge they are stealing our hard earned innovations and telling them as their biggest consumer worldwide we will not accept this and will not accept prohibitively high tariffs on our goods while giving prohibitively low tariffs on their imports to the US.
– cutting US business tax rates to stop the flood of money and wealth out of the us to other nations and making our business environment competitive once again with the rest of the world.
“You have not seen” only because you have not opened your eyes.
The House approved two bills IMMEDIATELY upon arriving in January. Neither bill was taken up by the corrupt leader of the Senate, Dipshit McConnell, until now. And he’s trying as hard as possible to ensure the right wing votes the House budgets down, despite the fact that his republican Senate approved an identical budget sans faux-Chinese Great Wall funds in autumn 2018.
McConnell is senile if he thinks wedding himself to corrupt incompetent Trump is a good strategy for the nation or for his most important goal: to enrich himself personally. The US economy is in self-caused implosion as the white house holds federal employees hostage. The US Chamber of Commerce has called for ANY solution to put employees back to work, with pay, because the economic fallout is only going to get exponentially more painful for everyone.
NAFTA renegotiation was so modest that the hullaballoo was practically counterproductive. Neither neighbor sees the USA as a reliable trading partner anymore.
Summit with N. Korea was a publicity stunt. No concrete treaty was signed, and North Korea still holds nukes. Pompeo has been globetrotting elsewhere instead of finishing the deal.
Trump has forced China to do nothing. He went to war with a country that holds all the cards. US corporate leaders are to blame for continuing to cowtow to the communist party. the Trump administration has done absolutely nothing to resolve the IP theft or create tax incentives for global corporations to stop doing business in China. See how Apple hasn’t changed a damn thing about its China operations. Quite the contrary, Apple has been opening up more design centers in China to appease the Party.
cutting CORPORATE business tax rates while jacking up tariffs has pushed the tax burden onto the citizens, with their pittance of temporary tax relief timed to explode in the future as the already out of control debt really mushrooms, killing domestic growth potential. Global corporations, already flush with cash, have not been building more factories in the USA, they have bought stock and expanded asian operations. Predictable.
What trump says and what he actually does cannot be further apart. Stop being taken in by the bombastic self-promotion. The results of Trump’s incompetence are apparent to everyone.
MIke- so again what compromise has been offered in the impasse? I read all your points and besides you noting that it was approved months ago (but not voted on?) i see no negotiations just as i stated above. keep in mind just because you agree with one side or the other doesn’t mean half the country doesn’t feel the other way so compromise needs to be just that… not a take it or leave it from either side.
NAFTA- lots of fluff in your talk (neither side sees us as reliable) but i see no facts supporting the fact that nothing was accomplished. Barriers were put into place to prevent those same autoworker jobs you lauded the loss of in your first paragraph but apparently that doesn’t matter now. How about artificially inflating the pricing of commodities being imported into Mexico and Canada with high tariffs which were eliminated in the process which hits home right where you would want it to in the midwest.
North Korea- publicity stunt maybe but they came to the table…and they haven’t tested any nukes since the meeting when they were averaging 1 test per month prior and they have actually opened up some dialog as opposed to rhetoric and saber rattling which was happening before. I am not saying this is some huge achievement but far from not furthering or interests in the rest of the world.
China- where to start here…. first and foremost i agree us corporations are somewhat to blame for the transfer of IP to china however what is lost in that point is why they were doing it. They were doing it because the taxes and regulations in the US were so high that it was better for them to give china the kitchen sink than to make anything here.. again this has been addressed and there are huge incentives to building here in the us….. for example in the Foxconn deal where they received huge subsidies for their building and are currently building out one of the largest manufacturing plants in the US.
Additionally maybe you missed foxxcon building out a 300m facility in india to start to ramp production there to protect against the china trade war threat.
That said…. to say china holds all the cards is the biggest farce yet. We are the consumers and we hold the cards or at least the same ones they hold. Without the US chinas economy collapses and vis a verse so it is in their interest as much as ours to level the field and allow true global trade not trade propped up by a communist government and taken on the face by the us consumer and us companies.
The one thing i will agree with you on is what trump say and does are very different things. He is vile, inflammatory, and sometimes disgusting in some of the things he says but the things he does and has done less far for for the country have at least trade and policy wise been good things.
Keep in mind you are Super Enraged over the government shutdown which is happening because at least someone has the balls to force the policy and not just talk about it. In case your forgot the same things he is saying right now about the border situation were iterated first by clinton, then by obama and then by schumer but now all of the sudden because trump says it its the worst thing ever said and we should all be ashamed for wanting it. I for one am no sheep and will not digest Big Media talking points from any source because i will not let the media tell me what i should and should not know and what i should and should not think,
… you were, are, and will always be a liberal moron.
Financially conservative, socially moderate, technologically liberal.
But compared to a corrupt self-serving lying trumpista, sure, everyone is a radical liberal.
In the past, Trump only went bankrupt with his companies. Nowadays, he’s pulling all of America in a hole!