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'China to face 1st ever recession if it doesn't sign trade deal with US'

News Agencies | Updated on: 16 August 2019, 10:00 IST
Xi Jinping-Donald Trump

China is likely to face its first-ever recession if it does not sign a trade deal with the United States, claimed a former economic advisor to President Donald Trump.

Trump on Thursday echoed the similar sentiments and quoted Steeve Moore in which he has said a trade war with the United States has heavily impacted China.

"If they don't get this Trade Deal with the U.S. done, China could have it first recession (or worse!) in years. There's disinvestment in China right now. Also, the Fed is too tight (I agree).' Steve Moore, Heritage Foundation," tweeted Trump.

This comes as Trump said that the trade meeting between the US and Chinese officials in September is still scheduled to happen and he will hold a call to discuss the matter with President Xi Jinping soon.

"September the meeting is still on as I understand it," Trump said on Thursday. The president also confirmed that a call was scheduled with Xi and it will happen soon, Sputnik reported.

The US and China are engaged in a trade war which is mark by the imposition of tariffs retaliatory tariffs. Recently, the United States on Monday designated China as a currency manipulator.

On August 1, Trump had announced that he would impose a 10 per cent tariff on the remaining USD 300 billion worth of untaxed imports from China, which came after trade talks between the two sides were held in Shanghai.

This means everything that China sells to the US, including clothes and iPhones to chemicals and construction equipment, will have levies of between 10 and 25 per cent on them starting from September 1, escalating the trade tensions between the world's two largest economies.

The US had already slapped a 25 per cent tariff on a separate USD 250 billion of Chinese imports. China retaliated by lowering the value of the yuan and suspended purchases of US agricultural products.

Calling the US' decision a "serious violation" of the consensus reached by the two sides at the G20 summit in Osaka, Beijing said the move deviated from the right course and will in no way help to end the trade war.


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First published: 16 August 2019, 10:00 IST