KITA releases analysis on Trump-Xi trade talks
- 5 years ago
So with the U.S. and China agreeing for now to keep trade tensions from escalating.... the Korea International Trade Association says... the truce may have been the result of an economic slowdown in both countries.
Our Ko Roon-hee explains.
Korea International Trade Association announced on Sunday... their analysis on why the two world's two biggest economies have agreed on a temporary ceasefire in their trade war.
The association says the 90-day truce was necessary because of the two countries' economic situation.
For one,... China's GDP growth slowed to 6-point-5 percent on year in the third quarter,... down 0-point-2 percentage points from the second quarter... and marking the weakest on-year quarterly increase since 2009, during the global financial crisis.
KITA added that consumption and investment in China is also slowing down.
This comes after the U.S. imposed 25-percent tariffs on 50-billion U.S. dollars worth of Chinese technology goods... including machinery, semiconductors, and autos... in July and August.
The economic situation is similarly grim for the United States.
Major news outlets reported that plunging sales in automobiles and houses were signaling an economic slowdown.
For instance, the Washington Post reported last month that General Motors' layoffs and plant shutdowns suggest that the U.S. economy may be starting to slow down.
KITA says the overall situation might have forced President Trump's hands to negotiate with Xi.
A manager at KITA points out another important issue in Saturday's agreement. An existing timeline.
"The most important part of Saturday's agreement is the 90-day timeline on the bilateral negotiations. This means that the United States won't wait forever until the two sides reach an agreement."
Meanwhile, although Korean companies earned more time to prepare for the trade war, KITA says the government and companies should prepare for additional tariffs possible next year.
Ko Roon-hee, Arirang News.
Our Ko Roon-hee explains.
Korea International Trade Association announced on Sunday... their analysis on why the two world's two biggest economies have agreed on a temporary ceasefire in their trade war.
The association says the 90-day truce was necessary because of the two countries' economic situation.
For one,... China's GDP growth slowed to 6-point-5 percent on year in the third quarter,... down 0-point-2 percentage points from the second quarter... and marking the weakest on-year quarterly increase since 2009, during the global financial crisis.
KITA added that consumption and investment in China is also slowing down.
This comes after the U.S. imposed 25-percent tariffs on 50-billion U.S. dollars worth of Chinese technology goods... including machinery, semiconductors, and autos... in July and August.
The economic situation is similarly grim for the United States.
Major news outlets reported that plunging sales in automobiles and houses were signaling an economic slowdown.
For instance, the Washington Post reported last month that General Motors' layoffs and plant shutdowns suggest that the U.S. economy may be starting to slow down.
KITA says the overall situation might have forced President Trump's hands to negotiate with Xi.
A manager at KITA points out another important issue in Saturday's agreement. An existing timeline.
"The most important part of Saturday's agreement is the 90-day timeline on the bilateral negotiations. This means that the United States won't wait forever until the two sides reach an agreement."
Meanwhile, although Korean companies earned more time to prepare for the trade war, KITA says the government and companies should prepare for additional tariffs possible next year.
Ko Roon-hee, Arirang News.