The Chinese Economy “looks terrible, it is collapsing”
President Trump’s economic adviser Larry Kudlow says the Chinese economy “looks terrible.”
Asked by President Donald Trump to assess China’s prospects this week at a cabinet meeting,Mr. Kudlow declared that “their economy is just heading South,” citing “the latest batch of numbers” from China’s markets.
“I’m not a China expert, although I’m boning up as fast as I can, I would just say right now their economy looks terrible,” the National Economic Council Director said.
Kudlow also said the latest data showed that “retail sales, business investment is collapsing.”
China’s economy decelerated from April through June as Beijing tightened credit policy to combat a spike in debt. The International Monetary Fund (IMF) expects Chinese growth to slow to 6.6% this year down from 6.9% in Y 2017.
“Right now, their economy looks terrible,” said Mr. Kudlow.
The Chinese currency, the RMB Yuan has fallen more than 9% since mid-April.
Dollar/Yuan (USD/CNY): -0.13% to 6.874; the RMB Yuan little changed on the week ended 17 August 2018
“There may be some manipulation” in the currency and “investors are moving out of China because they do not like the economy,” he added.
Currently, China is lobbying world for expanded DFI (direct foreign investment).
China has announced it has prepared a list of $60-B worth of US goods to hit with duties should the US follow through on a plan to impose tariffs on an additional $200-B of Chinese goods, as early as next month.
“People are selling their currency… investors are moving out of China because they don’t like the economy, and they are coming to the USA because they like our economy,” said Mr. Kudlow.
President Donald Trump want China to offer more at the bargaining table as the 2 countries prepared for their 1st major negotiation in more than 2 months in an effort to head off an all-out trade war.
“We’re talking to China, they very much want to talk,” President Trump said Thursday at the cabinet meeting at the White House. “They just are not able to give us an agreement that is acceptable, so we’re not going to do any deal until we get one that’s fair to our country.”
Earlier, China said is sending Vice Commerce Minister Wang Shouwen to the US for talks yet this monthwith David Malpass, undersecretary for international affairs at the Treasury Department
“It’s a good thing that they’re sending a delegation here — we haven’t had that in quite some time,” Mr. Kudlow said Thursday. “The Chinese government in its totality must not underestimate President Trump’s toughness and willingness to continue this battle to eliminate tariffs and non-tariff barriers and quotas to stop the theft of intellectual property and to stop the forced transfer of technology.”
China’s stock market has suffered declines and the yuan has been on a losing streak for more than a month. Chinese authorities, bracing for economic fallout, have introduced measures to support growth ranging from shifting toward a more accommodative monetary policy to boosting fiscal spending.
The Trump Administration imposed duties on $34-B of Chinese goods last month, a move that also prompted immediate retaliation from Beijing. Another $16-B in tariffs will be effective on 23 August.
China will align with the US on trade.
Have a terrific weekend