Free Trial
STIR

OIS Consolidates Higher Post-RBNZ

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI INTERVIEW: US-China Trade War To Get “Much Worse” - Pettis

(MNI) Beijing

China has done little to address the underlying causes of its trade surplus with the U.S., said Peking University’s Michael Pettis.

The US-China trade war will “inevitably return” given Beijing’s failure to address the nation’s high savings rate and low consumption that has constrained demand for US goods, with Washington expected to refocus on the trade deficit as the threat posed by Covid and inflation passes, Peking University economics professor Michael Pettis told MNI.

Pettis believes trade tensions will again dominate relations between the world’s two largest economies, as tariffs unveiled by U.S. President Donald Trump in 2018 have failed to close the yawning trade deficit that has seen the U.S record a deficit in excess of USD30 billion every month this year.

Keep reading...Show less
639 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

The US-China trade war will “inevitably return” given Beijing’s failure to address the nation’s high savings rate and low consumption that has constrained demand for US goods, with Washington expected to refocus on the trade deficit as the threat posed by Covid and inflation passes, Peking University economics professor Michael Pettis told MNI.

Pettis believes trade tensions will again dominate relations between the world’s two largest economies, as tariffs unveiled by U.S. President Donald Trump in 2018 have failed to close the yawning trade deficit that has seen the U.S record a deficit in excess of USD30 billion every month this year.

Keep reading...Show less