The US-Chow Trade War, which deteriorates do not make a deal

This report from the introductory issue of the CNBC China Connection Bulletin, which gives you an understanding and analysis of what drives the second -largest economy in the world.

This week we will look at how quickly the hopes for the US-Kita transactions disappear. We also have the last one about what China signals business, several technological developments and which macro -issues need to be monitored.

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I just asked the press -secretary Lynn Jiang Xi jinping and the US president Donald Trump It will soon advocate for trade negotiations whether it became more difficult.

“We have repeatedly emphasized that pressure or threat China is not the right way to interact with us,” Lin finally said, according to official translation into English in mandarin. “China will firmly retain its legal rights and interests.”

As for the negotiations, he rejected the question to the “competent authorities”. He added on Tuesday that the US does not seem to be serious about negotiations, given its actions.

Last weekend saw Big shift in Beijing’s position As he decided to return to 34% increase in tariffs with mutual duties across the board, not preserves aimed at certain US products.

Now analysts are talking not only about the war because of the trade, but also the one that can extend beyond technology to investment and geopolitics.

“I was definitely surprised that China immediately went (with) mutual tariffs,” said the number -Ren, the leader of the quantitative investment in Wisdomstree on Tuesday. “The risk (Beijing accepts) Taiwan will increase.”

“The US policy rate is also much faster than people,” she said.

It will take less than a week for Chinese exports to the US exports to take off above 100%. Reserves have plunged around the world over the hassle of economic cases, while China has announced its market this week.

Last Wednesday’s rapid catch-up announced 34% of China’s tariffs except 20% in the beads used earlier this year. China replied on Friday 34% of US goods tariffs. Trump threatened another 50% tariffs in China on Monday if Beijing did not retreat.

So far, China’s response – it’s clear not. Trump claimed Talks with Beijing about the “requested meetings” will be stopped. The White House has confirmed CNBC that 104% of the tariffs in China were set out of Wednesday.

“China realized that there was little sense to restrain itself when the ultimate goal of the United States is to restrain China,” said Jianwe SU, the Senior Economist of the Great China in Natsis on Monday. “This is very, very anxious for the Chinese government.”

He expects transactions only if both countries have found that their internal bases have suffered – and noted that China has been negotiating with the US since 2018, much earlier than any other government that now feels from tariffs.

Curing on both sides

In addition to some individual tariff restrictions and Chinese exports, it is unclear what the United States-Chow will look like.

During the Biden administration, China repeatedly requested the US to remove its technical restrictions, just to recall them. Trump has reduced the Baytans deprivation in US Tiktok Operations as an opportunity for lower tariffs – the company stated on Saturday that “differences on key issues remain” while Trump has extended the sale again.

“At that moment, there is really no point in meeting President SI and President Trump if something is not developed in the background,” Ren said. She closely monitors whether Trump’s US economic pressure slows down the process of interchange.

She said that a policy leaving both countries reflects how decisions are made at the top and serve as a reminder to investors that the US and China’s competition remains here, even with other market stories about Deepseek AI or incentive in China.

A comment published on Monday on the main page of the state -owned newspaper emphasized how China focused on Strengthening your own economy in the conditions of escalation of trade tensions.

China’s policy has become more consistent and clearer around its goals, such as minimizing economic breakdowns, Yue Su, Chinese chief economist at the Economist Intelligence unit, according to an electronic message on Monday. As for the US, it expects Trump’s team to be increasingly leaning toward tougher positions.

According to her, China’s response on Friday was “clearly calculated” rather than impulsive. SU said that the Chinese president usually relies on trade associates, while XI himself is usually focused on extensive programs such as anti-corruption, green development and “general well-being” to increase income inequality.

Central decision -making allows both sides to rapidly raise or reject the tariffs on the back, she said. “Given this, it introduces more short -term volatility both in the financial market and in the real economy.”

For Chinese shares, there are also questions about how Beijing will increase the growth of the home, and whether other companies will prove to be as innovative as Deepseek.

The internal incentive “can come on any day,” said Vaaher, Investment CEO, Asia Pacific Morningstar Investment Management. He is looking for opportunities to add to China Techno and Consumers.

“We also believe that both parties will potentially want to come to the transaction if there is a deal,” he said. “But at the moment, there seems to be some disability.”

Competition chain of Asia supply “Hard to repeat”, – said the financial director Lenovo

Winston Chen, the financial director of Lenovo, told “Chinese communication” CNBC that the United States went beyond (appearing) a production base for some time. “

Full Interview CNBC with Senior White Home Advisor Piter Navarre

Peter Navaro, Senior Trade and Production Advisor Trump, joined the “Squawk Box” CNBC to discuss the fall of Trump’s broad world tariffs.

Chinese tariffs do not matter to the economy in the macros, said Aei scissors

Derek scissors, Asia economist in Aei, joined the “exchange” CNBC to discuss trading relationships with China, ways like China can raise tariffs and more.

Mainland Chinese CSI 300 decreased by 1.11%, and Hong Kong Hang the Index – The included several large Chinese companies – from 10:00 local time decreased by 3.22%.

Both indices have fallen since the beginning of the year, with CSI 300 decreased by 8.43%, and the Hang Seng Index decreased by 2.45%.

A 10-year-old 10 Chinese Chinese bond government decreased slightly to 1.647%.

The Chinese Yuan, trading on the shore, reached a record low against the US dollar on Tuesday.