Report: China to be more affected by US-China trade war - ANALYSIS

Baku. 20 September. REPORT.AZ/ The US-China trade war is deepening

Report’s Analytical group reminds that US will apply 10% customs duty on imports of more Chinese products worth $200 billion from September 24.

This index will rise to 25% from January 1, 2019. If China takes any responsive step against it, US will not allow import of all Chinese products without duty, which will be the confrontation with the highest value in the history of the World Trade Organization.

This confrontation may create a perspective for other countries. However, it is not true to think that US and China will put an end to mutual trade. At least, official Beijing is not interested in the rupture of ties. Because, the trade war will affect China more and US will demonstrate better performance. It seems therefore, Chinese President Xi Jinping does not stay out of the topic on trade war as he did previously, on the contrary, he is closely participating in the process of solving the problems.

Currently, the dollar exchange rate in China is CNY 6.85. Probably, on the background of tension with the US, the Chinese government will take measures to prevent the CNY/USD rate from exceeding 7 and won’t allow sharp devaluation.