The trade dispute continues unabated as US president Donald Trump accused China of creating the situation that US farmers are in. In a tweet, the president defended the farmers, saying that his "love and respect" for them is a reason why China is allegedly making things difficult with their own version of the tariffs, instead of coming back to the table to discuss with the US.
While Trump continued to accuse the Chinese of viciousness as well as attempts to take advantage of what he perceived as US hospitality, Chinese president Xi Jinping is echoing completely different sentiments. SMH AU reports that Xi Jinping, coming from the South African summit, said that there is a choice today in the world between cooperating with potential allies and confronting those who don't share the same ideas.
Speaking further about the issue, the Chinese president said that the route the US is taking is headed down a completely difficult path. He continued that this path-towards 'economic hegemony-was a path towards completely devastating consequences, and he cautioned the US to rethink its position on the tariffs before things get out of hand.
With the escalation of the disputes, the renminbi continued its downward spiral. It hit its rock-bottom for this year against the dollar, and all in all, the renminbi had continued its fall against the US dollar.
Financial Times points out that there may be an ensuing currency war in the offing as well. This is because, as the Chinese currency slid against the dollar, it might have been what Trump had been saying when he accused trade dispute opponents China and the EU of 'manipulating their currencies and interest rates.'
To be frank, China's currency-as its officials and some analysts had pointed out-is reacting normally against the tariffs and different issues happening domestically. In a sense, the renminbi is reacting to market forces, letting this guide wherever the currency's value is headed, and the consequences of these actions are only natural results.
The results are in, and the Chinese president may be right in his idea that there are no winners in this trade dispute. Until Trump decides to fully go back to discussions and work out solutions for the best of everybody, there's no end in sight to the bleeding of the world's two largest economies.
