Do you know that the China-US trade war has resulted in billions of dollars of losses for both sides in 2018 – and hitting industries including agriculture, autos and technology?
Just Beijing’s tariffs on soybeans, corn, wheat and sorghum alone will produce the unwanted effect of the two protagonists each losing about $2.9 billion annually, according to Purdue University agricultural economist Wally Tyner.
Total US agricultural export shipments to China for the first ten months of 2018 fell by 42 percent from a year earlier to about $8.3 billion, according to the US Department of Agriculture.
China has mostly been buying soy from Brazil since imposing a 25 percent tariff on American soybeans in July in retaliation for US tariffs on Chinese goods. The surge in demand pushed Brazilian soy premiums to a record over US soy futures in Chicago, in an example of the trade war reducing sales for US exporters and raising costs for Chinese importers.
China also suffered as products such as phone batteries were hit by US tariffs, and customers began looking to buy from other countries.
A study commissioned by the Consumer Technology Association showed US tariffs on imported Chinese products cost the technology industry an additional $1 billion per month.
The conflict also squeezed US retail, manufacturing and construction companies that had to pay more for metal and other goods.
“Input price pressures remained elevated in part due to tariffs, particularly in manufacturing and construction, and firms were struggling to pass these higher costs onto customers”, the Dallas Federal Reserve said.
In fact, the Big Three Detroit automakers – General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles – have each said higher tariff costs will result in a hit to profits of about $1 billion this year.
Therefore, it is worthwhile for these two countries to really scrutinise the consequences of their own actions because if they don't work together, “it’s a lose-lose for both the United States and China”.
Methinks, both China and the US of A are bound together by a relationship built on co-dependency – and this rightfully, should ensure that the two superpowers won’t go at each other’s throats anytime soon.
Even with Donald Trump in the White House.
China needs the US as much as the US needs China. Both countries will just have to learn to live with each other.
Regretably, at this point in time, the US is hostile.
Prime Minister Mahathir Mohamad today unveiled the 'Putrajaya' sign, the latest landmark at the federal government's administrative capital.
Image credit: The Star Online, December 31, 2018
With Perdana Putra, which houses the PM's office in the background, the stainless steel sign in the form of the letters P, U, T, R, A, J, A, Y and A has colourful graphic s that also feature the Jalur Gemilang.
But often we forget that it is not landmarks that Putrajaya need – these are just man-made structures and they are nothing more than that. They may be striking, stunning and even spectacular – but the city itself is artificial and it lacks vibrancy.
Putrajaya needs a soul.
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