The word “war” is already uncontested is used to describe trade relations between the US and China. Although the IMF has confirmed, to accuse Beijing of currency manipulation is wrong. But Washington continues to pressure. This week from the American statements were crumbling Asian platform, in a row us stocks and oil prices fell from 7 percent. And since September 1, the United States introduced duty in the amount of 10 percent on goods from China with a total value of $ 300 billion. In fact, the whole remaining Chinese imports. And that for investors the signal that the war enters its acute phase. After all, in just one day this week due to disputes in the US and China richest people in the world have lost $ 117 billion. And in the Chinese another sleeve, the trump card: securities of the United States a trillion dollars. They can become invincible figure in chess long ago turned into a minefield of us-China party.
The first move of Beijing in new Chinese-American party was simple as E2-E4. For the first time since the global economic crisis of 2008, the Chinese people’s Bank lowered below 7 yuan per dollar. It would seem, here it — happiness American: the Chinese economy subsided. But in this short USA also saw the Chinese calculation.
A cheap yuan as a way to help their exporters, at least in part to cover losses from inflated fees. In this course, more revenue and customers in the United States. Trump even more furious and accused Beijing of currency manipulation.
“What a small drop in the yuan, just one trading day, and then you call it a currency manipulator? Just three months ago, the U.S. Treasury itself said — China is not manipulating its currency. In fact, if China intervened, just not to allow the yuan to fall so low,” — said Xu Tingduo, senior researcher.
But the exchange on currency fluctuations had time to react. Indexes fell not only across Asia. The yuan on a ten-year low on wall street, the deepest during the year, the failure of the major indexes, from which the exchange has barely recovered within a week. A new round of trade war, the United States and China drove into the paint with the Dow Jones, the NASDAQ and the S&P 500. Investors are losing faith in the global economy. As always, in such cases, expensive gold and silver.
For trump it is bad news. For three years he convinced the voters that the growth in the stock market — the merit of his economic policies, and along with the reason for re-election. On his head convinced.
“In China everything is going well. We talk, but we are still ready to deal. Let’s see what will happen next. We simply have no choice to act otherwise,” said trump.
Zugzwang. Any move worse, but not can not walk. Trade war spills over into the economic.
In fact, the Chinese in their tastes conservative, and foreign products to buy, more curious. But there are those, without which Chinese cuisine is impossible to imagine. Label Chinese brands, but the oil is made primarily from American soybeans. We’re bringing her in to the factories to recycle in flour, additives for animal feed, to create biofuels. But here it is — the main product of processing. And the market, which for US is the key.
After a disastrous 12th round of talks the first thing that made China blocked shipments of American agricultural products. It is planned to compensate at the expense of other markets. For example, from Russia.
China is the fourth largest market for American agricultural products. After raising Beijing’s import duties or even a ban on the supply, farmers in Pennsylvania literally risk being left on the beans. 60 percent of all soybeans produced in the U.S. is exported to China.
Scott Becker, like all his neighbors, voted for trump. But he promised a victory in a trade war is not visible, and the price of soybean and corn are falling. 4 billion dollars in losses from exports will cost the farmers current trompowsky gambit. “People will be difficult to pay the bills. Farmers in a precarious position. Times are tough, which is necessary to survive. May have to sell the farm or sell part of the land to survive,” says Scott Becker.
Becker there are also cows. If he will not wait for insurance, then let the herd under the knife, and then clear who will sacrifice on the day of voting.
Montana. The middle of nowhere. All hope for a communication tower. The tower equipment of Huawei. In Washington, Huawei accused of cyber espionage, and the operator need to get rid of Chinese iron. “Sometimes I compare the situation with a flight in a jet plane with two engines when someone offers to replace one of the engines at an altitude of 10 kilometers. This is probably not a good idea,” said Mike Kilgore, CEO of the cooperative telecommunications Nemont.
Seven years, several million dollars would pay the Americans the Americans to expel from Montana Huawei. To drive Google release Android Chinese smartphones in US already tried.
A ban from Google on the Android platform US, of course, expected to deliver Huawei instantly and check, and mate. But Chinese corporations have been ready for a long party and the return stroke has developed its own operating system, which is also called “Harmony”. “Compared with Android operating system Harmony is more powerful in performance and better security,” said Richard Yu, CEO Huawei.
Come to “Harmony” in smartphones in the company are ready tomorrow. But Huawei still expect to be able to negotiate with Google.
New town Huawei outwardly is absolutely not similar to a giant Corporation. Instead of the usual for IT industry of glass and concrete in the style of hi-tech — Europe in miniature. Laboratories, research centres and homes for the employees — and there are 25 thousand. From the lab to the lab moved on signature the red train. The campus even has paved its own railway siding. To drive around town in circles — exactly 22 minutes.
The view from the Windows — like and not China at all. Mikrorayonami on campus are: Paris, Granada, Verona. No outside signage.
One of the most secret units of the Huawei lab in cyber security. It was here, judging by the statements of the us President, allegedly created threats to the United States. In fact, here tested all the new equipment that is yet to be implemented. Just on the subject of security and vulnerability.
A huge server room, which are performed millions of operations per second. For production line testing of the chip. When the United States banned its firms to supply Huawei chips for electronics, here are just have developed.
“We assumed that the United States can block the supply, so many years ago began to find their own solution. And now it is,” Lee said Keen, the head of Huawei Consumer Business Group.
Here and in a recent report: despite the pressure, corporate profits only grew. And contracts for development of 5G networks, and against whom was the trump run, though not in the United States.
The Manhattan is not Patriarchal Pennsylvania. Trump democratic new York and so dislike, and even higher prices for iPhones regulars store on Madison Avenue, the President of the United States do not forgive. If Apple is forcibly made to return manufacturing to America, the price for the phone will go through 2 or even 3 thousand dollars is scaring buyers. Shop Gina’s home in new Yorks Chinatown, the price tags have to rewrite. That caps “will Make America great again”, which is made in China, has risen. “Prices have risen by a few cents. However, buyers are unhappy,” says the owner of the shop.
Pennies add up to dollars, and always to convince those who loses, that Beijing will pay for everything, trump will not work. That is, even if to agree that the whole thing just a clever way that the President of the United States induces the fed to lower rates (there is such a version), the party moves to the endgame.
“I’m not sure that trump is a good President, but he was a good businessman who knows how to negotiate. And the Chinese are not stupid, they know how to deal with the Americans over the last 40 years they have earned a lot. But now it’s time to speak and make money for both parties,” — said Justin Yu, President, China chamber of Commerce of new York.
Alternative to negotiations, war to exhaustion or as they say in chess, Chinese draw. Whoever has the first pass the nerves, turns the whole Board. And then nesdobrovat no pawns or Queens of the world economy.
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