Tariffs between the US and China have ballooned in recent days, but it seems more likely now that the two sides will start talking to each other.
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Chen Long and Bo Zhengyuan discuss Trump’s latest tariffs, Beijing’s response, and what we expect to happen next.
Beijing has retaliated against Trump’s latest tariff hike with a basket of measures and vowed to provide greater support to the economy.
Trump has announced a major new tariff package, including a 34-ppt hike on China; the US also revoked the de minimis treatment for Chinese shipments.
The USD/CNY spot rate has been quite stable over the past two months despite higher tariffs from the US, largely due to a weak USD.
Beijing has expressed opposition to CK Hutchison’s plan to sell its Panama ports, and we doubt the deal can proceed as originally planned.
Chinese internet giants have begun to integrate AI into their mainstream applications.
China has continued to consolidate its role as the world’s top industrial robot market and production powerhouse.
Industrial value-added and retail sales looked fine in Jan-Feb, while exports were quite weak.
Market interest rates have gone up despite a supposed loosening of monetary policy, and the PBOC has stopped buying bonds; sentiment has improved.