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Trade war threatens jobs and growth

Trade war threatens jobs and growth

(5 February 2019 – China) Up to one million American jobs are at risk due to the effects of the escalating trade war and Chinese economic growth could stall further from its slowest pace in almost 30 years according to a new study by Trade Partnership Worldwide.

The research forecasts over two million American jobs could be at risk should US President Donald Trump push ahead with his threat of a 25 percent tariff on all Chinese exports.

China said Vice Premier Liu He will join US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in high-level trade talks between the two countries this week. The two trade teams will discuss issues of common concern as they build on talks that took place in Washington in January. This round of talks is of particular significance as US President Donald Trump has said he’s unlikely to meet President Xi Jinping before a March 1 deadline to avert higher American tariffs on Chinese goods. It may be set to reveal how complacent traders have been about the trade dispute just as the rally in emerging markets loses steam.

Currently US$250 billion of Chinese exports to the United States are subject to tariffs of between 10 to 25 percent, but the number of goods on the higher tariff range will increase after 1 March if US and Chinese negotiators do not reach a deal. Beijing is rushing through reform of foreign investment, which would offer greater protections to foreign companies in China, in areas including intellectual property and profits, at “unprecedented” speed.

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