“The U.S. and China will eventually be able to come to a trade deal, according to private equity billionaire David Rubenstein,” Huileng Tan reports for CNBC. “‘My view is this trade dispute will be more of a skirmish, not a war,’ Rubenstein told CNBC on Tuesday at the Barclays Asia Forum in Singapore.”
“‘I think there will be a resolution not unlike what happened in NAFTA. There was a back-and-forth, but ultimately a resolution occurred,’ said Rubenstein, who is also co-founder and co-executive chairman of The Carlyle Group,” Tan reports. “The tit-for-tat tariffs are ‘relatively modest’ compared to the sizes of the U.S. and Chinese economies on their own, he added.”
“‘I think it’s a bit of a mistake to worry too much that we won’t be able to come together with China. I think the United States administration wants to reach a deal and the Chinese want to reach a deal,’ he said,” Tan reports. “‘Obviously, what is said in public might not be what is really said in private, so I’m confident at some point this will come together,’ said Rubenstein.”
Read more in the full article here.
MacDailyNews Take: As we wrote back in August:
The tariffs are not the end game. They are bargaining chips and, due to the trade imbalance, the U.S. has 376 billion more chips with which to play than China ($506B – $130B). Hence the empty rhetorical threats from China’s state-run media. China’s running out of chips already.
This initial negotiation phase too shall pass. The end result will be better than the starting point.
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
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
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
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