US rates UU And China comes into play, China retaliates



The direct impact of trade tensions on China's economic growth in 2018 is expected to be limited between 0.1 and 0.3 percentage points, according to economists' estimates.

Liang Hong, chief economist at CICC, told CNBC on Friday that China's plan to open its markets "can be kept on track," with its target of 6.5 percent growth this year still within reach. .

On the other hand, it is the EE economy. UU the one that is expected to receive more damage, according to badysts, who warned that US liens could affect US companies with investments in China. The world's largest economy would also be hit more if we consider that it is "waging commercial wars on multiple fronts," including its disagreements with Canada and the European Union, DBS said in a note.

"In each skirmish, the US targets different economies and consumers, but the retaliation of each counterpart falls on the same group of US consumers and businesses." In our opinion, the settling of accounts is in process ", said the note.

Matthew Goodman, specialist in Asian economics at the Center for Strategic and International Studies, said the White House has not considered the interest of American companies.

"There is a long history of American and other companies in the Chinese markets, so it's a big concern here … but in the White House, it seems that they have not thought about those ramifications, or that they have and just They do not care because they think they need to raise the temperature, "he told CNBC" The Rundown. "

For its part, China said on Thursday that the United States is attacking the world with its tariffs threatened.

"The US measures are essentially attacking the global supply and value chains. In short, the United States is opening fire worldwide, including itself," said the spokesman of the Chinese Ministry of Commerce, Gao Feng

According to the DBS note, South Korea, Malaysia, Taiwan and Singapore are the economies at greatest risk in Asia, based on trade openness and exposure to supply chains. It is expected that there will be a drag on growth in 2018, and could double in 2019.

– The Associated Press, Reuters and CNBC
Chloe Aiello
and
Marty Steinberg
contributed to this report.

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