CNN reports that President Trump said in an interview with CNBC that since I was elected president, China has lost between $15 trillion and $200 million. The fact is, its just nonsense, and I dont know what kind of losses hes referring to.
[Truth] The report points out that the overall size of Chinas economy is about $13 trillion, so its losses cannot exceed its value. In addition, Chinas economy continued to expand during Trumps administration.
Since Trump was elected in November 2016, Chinas gross domestic product (GDP) has been growing by more than 6%. Although Chinas economic growth has begun to slow down, this trend began before Trump was elected.
According to the World Bank, Chinas GDP in 2017 was $12.238 trillion. Chinas economy grew by 6.6% in 2018, which will make it slightly larger than $13 trillion.
Reported that if China really lost $15 trillion to $20 trillion, it would have withdrawn from the stage of the world economy.
According to the report, Trump seems to have expressed a bigger view here that his trade policy is undermining Chinas economy. This is true to some extent. (However, as economists point out, these tariffs also hurt the U.S. economy.)
Trumps Lies II
CNN reported that Trump claimed that China manipulated its currency. The fact is that Trump runs counter to his own Treasury. He called China a currency manipulator, and the Ministry of Finance gave up labeling the Asian giant a few weeks ago.
[Truth] Reported that at the end of May, the U.S. Treasury once again refused to list China as a currency manipulator, despite Trumps promise during the 2016 election campaign. On the contrary, the Treasury Department put China on the watch list in its review of U.S. trading partners.
Trumps Lies III
CNN reported that Trump claimed that Beijing would agree to an agreement because his tariffs on Chinese goods led to companies leaving China, which was taking a heavy toll on China. And the fact is, its a bit exaggerated.
[Truth] The report points out that there is evidence that some U.S. importers have indeed moved some of their business out of China since Trump imposed tariffs, but there is little evidence that a large number of companies are moving out of China completely, and the process may take years.
The report also said it was unclear whether companies were really shifting production outside China or simply changing the routes of commodities for minimal processing before shipping them to the United States. A report by London-based Kaituo International Macroeconomic Consulting said that the increase in imports from Vietnam and other places at least partly explained what was happening.
In addition, it is not easy to find a supplier with the same quality but lower price outside China, the report said. On the contrary, importers may decide to bear the cost, betting that Trump will abolish tariffs as soon as possible. They can also choose to temporarily pass on costs to consumers.
About 60% of companies surveyed by the American Chamber of Commerce and the Shanghai American Chamber of Commerce last month said they had no plans to move manufacturing out of China because of tariffs.
Trumps Lies IV
CNN reports that Trump claims that his tariffs on Chinese goods have not raised prices. The fact is that although inflation in the United States is still relatively low, new research shows that the prices of products subject to tariffs have risen substantially.
[Truth] According to the report, economists at Goldman Sachs found that the prices of tariff-imposed goods (mostly Chinese) rose sharply last year compared with those of goods without new tariffs. In other words, Goldman Sachs estimates that 40% of tariff costs have been passed on to consumers, with the rest shared between producers and retailers. (So far, these tariffs have nearly doubled U.S. Customs revenue, bringing billions of dollars in revenue to the Treasury.)
According to a paper by economists at Princeton University, Columbia University and the Federal Reserve Bank of New York, by the end of 2018, American businesses and consumers were paying an extra $3 billion a month due to tariffs.
In its economic report, the U.S. government acknowledged that consumers would pay higher prices for products after imposing these tariffs.
Picture: Trump 10 with consumer news and business channel host (left) telephone connection video screenshot. (American Consumer News and Business Channel website)
Source: Reference News Network Responsible Editor: Wang Xiaowu_NF