China’s Rebounding Economy Puts US on the Back Foot in Trade Talks
- by Admin
- 4 years ago
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China’s economy rebounded Throughout the first quarter, granting the Government space for maneuvering as trade discussions with the U.S. enter a vital stage.
Gross GDP rose 6.4 per cent in just three months, matching last quarters growth and exceeding economists estimates.
The numbers are a change from as recently as January when crucial readings were pointing to a pronounced downturn. American officials had touted such weakness as leverage in their drive for a trade agreement.
But now that China’s expansion is recovering, Trump and staff will be getting more questions from pundits and the press about whether his leverage is falling away.
While the better data is not likely to radically alter the course of negotiations which are in their late stages, at the very least they will change the atmosphere.
White House economic advisor Larry Kudlow, who in January described China’s market as “very weak,” on Tuesday said the discussions are making “very good progress.”
The market of tit for tat tariffs last year involving The planet’s two-biggest markets on approximately $360 billion worth of each other’s goods had retreated on international growth and hammered sentiment before the two governments agreed to a truce.