President Trump has announced this Monday to become the first day of the trade war between the United States and China. Chinese president Xi Jinping was notified three days in advance about the upcoming response to unfair trade practices.
The American investigation into international trade policy perpetrated by the Chinese government will become the official casus belli for an escalating conflict. The investigation will be open under Section 301 of the Trade Act of 1974. According to the US officials, China violated intellectual property rights and forced technology transfers, that hamper business operations of the American companies in the region.
It is not yet clear how China will react to this measure. The only official response it has provided so far is a call for peaceful negotiations. “We would like to emphasize that the Chinese government has always attached importance to intellectual property protection,” a government representative said. “The results are there for all to see.”
On the national level, however, Chinese media signaled readiness to counter any trade limitations imposed by the West. The trade war has not yet begun but it does not look avoidable.
Economies of the United States and China, as well as their allies and trade partners, can be negatively affected by the upcoming standoff. The exchange rates of the USD and the CNY are likely to depreciate amid conflict.
2 min
Table of contents
MOST TRADED ASSETS
- Binary Options
- Digital Options
- Forex
- Stocks
- Indices
- Commodities
- ETFs
-
EUR/USD
1.04
Trade+0.14% -
USD/JPY
158.08
Trade+0.57% -
GBP/USD
1.25
Trade-0.19% -
AUD/USD
0.62
Trade-0.4% -
GBP/JPY
197.75
Trade+0.37%
-
Microsoft Corporation
438
Trade-0.34% -
JinkoSolar Holding Company Limited ADR
26.11
Trade-2.39% -
Tesla, Inc.
457.2
Trade-0.78% -
NVIDIA Corporation
139.4
Trade-0.88% -
Coinbase Global, Inc.
273.5
Trade-0.82%
-
Gold
2635.74
Trade+0.82% -
Crude Oil WTI
70.05
Trade+0.03% -
Crude Oil Brent
73.24
Trade-0.11% -
Silver
29.81
Trade+0.67% -
Natural Gas
3.23
Trade-6.24%
-
US 100
21723.23
Trade-0.49% -
US 500
6029.87
Trade-0.21% -
US 30
43208.74
Trade-0.05% -
JP 225
39793.5
Trade+0.96% -
GER 30
19887.85
Trade-0.09%
-
UltraPro Short QQQ
28.04
Trade-0.25% -
S&P 500 ETF
600.64
Trade+0.12% -
20+ Year Treasury Bond ETF
87.51
Trade+0.19% -
Daily Junior Gold Miners Index
38.01
Trade+1.48% -
Dow Jones Industrial Average ETF
432.35
Trade+0.28%
Your capital might be at risk
Related posts
Market Overview: Big Winners and Epic Losers of 2024
7 Habits That Define Winning Traders
Black Friday, Christmas, New Year: Tips for Trading This Holiday Season
3 Steps to Improve Your Trading Psychology
11 Life Lessons We’ve Learned From 11 Years Of Trading
New Year Resolutions for Traders
Breaking a Losing Streak
The US Presidential Race 2024 Market Influence: What You Need to Know Now
What should you learn next? Turn the wheel to find out!
