May 1, 2025
US-CHINA TRADE WAR: China Gains Leverage As US GDP Contracts and Trade Tensions Mount thumbnail
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US-CHINA TRADE WAR: China Gains Leverage As US GDP Contracts and Trade Tensions Mount

US GDP Contracts While China Shows Resilience, Raising Questions Over Who Holds Trade Leverage.”, – WRITE: www.fxempire.com

Robin Brooks, Senior Fellow at the Brookings Institute, Commented:

“The US SPENT this week Negotating with Itself on China Tariffs, Calling Them Unsustainable & Saying they’ll Come Down. Meanwhile, China Holds The Yuan Steady, Portray Erratic US Policy to the Max.

China Pressures Brics to Resist US Trade Outreach For China to Kep the Upper Hand, US Progress in Reaching Trade Agreements Poses A Risk to China’s Negotating Position. If Washington and Us Trading Partners Reach Trade Agreements Favoring The Us, China Could Lose Its Footing and Risk Becometing Isolated In Global Trade.

This Week, Beijing URGED BRICS NATIONS NOT TO RUSH INTO TRADE AGREEMENTS WITH THE US. CN Wire Reported:

“AT A Brics Meeting, Chinese Foreign Minister Wang Yi Warned Countries Against Yielding to Us Tariff Threats, Saying APPEASUMENT Wuldy Only Embolden the“ Bully, ”and Urged Emerging His Stern Remarks Signaled China’s Intenation to Resist Pressure for Trade Talks Even as US Treasury Secretary Scott Bessury Suggested Washington Might Ban Certin Exports To China.

US Markets Narrow The Gap As Beijing Stays Silent on Stimulus Mainland China’s Equity Markets Closed April in Negative Territory, Reflection Market DisappeinTment Over Beijing’s Silence On Stimulus. The CSI 300 Fell 3%, While the Shanghai Composite Index Declined 1.7%. Hong Kong’s Hang Seng Index Came Under Selling Pressure, Sliding 4.33%.

By comparison, the nasdaq composite index ended april with a modest 0.85% Gain, Narrowing ITS 2025 Performance Gap with Chinese Markets. Year-to-Date, The Nasdaq composite index have fallen 9.65%, while the CSI 300 have dropped 4.18%. Despite the month’s Pullback, The Hang Seng Index Ended April Up 10.27%, UndersCoring Optimism That Beijing Will Deliver Stimulus if Needed.

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