Larry Fink CEO and Chairman of Blackrock told press that several large corporates are moving their business operations out of China due to the trade war between US and China that has stretched beyond a year and are not willing to wait for outcome of discussions between trade representatives of both nations. The trade fight between both nations that began last year with Donald Trump imposing 25 % tariff on Chinese imports worth $200 billion and China also imposing similar duties on American imports has escalated to such an extent that it is now affecting economies of other countries.
Even now USA has threatened to impose another range of tariffs on $325 billion worth of goods even as trade negotiations are going on. As both countries show little signs of ending the battle soon around 50 multinational firms have announced that they are moving out their production units from China into nearby South-East Asian countries like Vietnam. During May this year IT majors like Apple, Nintendo, Dell and even Brooks Running (A division of Berkshire Hathway) stated that they aremoving out of China and around 8000 jobs will move with them.
The Chinese economy is also showing signs of lagging as during second quarter of this year it grew by 6.2 % which is its slowest rate in 27 years and trade data showed that the nation’s exports fell by 1.3 % since last year due to tariffs. During May China’s exports increased by 1.1 % while imports fell by 8.5 % and this helped in trade surplus of $41.65 billion while the trade surplus grew the next month and was at $50.98 billion. Its trade surplus with United States was at $29.92 in June this year and custom data shows that China’s trade surplus during beginning of 2019 was at $140.48 which was high than last year’s figure of $133.76.
Mary Wade has studied masters in masters in air and space law and is working as a content writer. She writes about space, science, and stargazing. Formerly Mary has worked with one of the top space research institutes in the country. She writes space-related articles and news at our news portal. In leisure time, Mary likes to do doodling and believes that this improves her cognitive skills. She is intelligent with technical background knowledge.