Wilbur Ross just blacklisted 28 Chinese tech companies. Ross claims those companies violate America’s intellectual property rights. And they play a role in violating the rights of Muslims living in the Northwest region of China.
Blacklisting more Chinese tech companies is Trump’s latest attempt to force China to agree to his trade terms. China wants the Chinese to sign a trade deal that forces them to change their internal laws, but China told Trump that won’t happen. China still wants to sign a deal so American farmers can fill Chinese orders again. But Mr. Trump told the press he wants a big deal that includes putting a plan in place that prevents Chine companies like Huawei from spying on U.S. tech companies.
The trade talks will begin before the October 15th deadline, but Wall Street economists say it’s doubtful Trump will agree to a partial deal. Steve Mnuchin and Bob Lighthizer plan to meet with chief Chinese negotiator Liu He this week to break through the trade deal roadblocks. The Chinese economy feels the effects of Trump’s tariff war. But President Xi won’t let Trump claim a win without inflicting serious economic damage to Trump’s great economy, according to the New York Times.
U.S. economic growth is below two percent and that growth could go into negative territory if Trump continues to tariff-screw China and Europe. Mr. Trump plans to put additional tariffs on European products on October 15th. That means American consumers will pay more for French wine, cheese, and other European items Americans buy on a regular basis.
Most economists think Trump’s tariffs and sanctions are the catalysts for a global recession. Those economists predict a U.S. recession in 2020 even though Trump’s economic advisors call that prediction fake news. But now that the manufacturing sector of the economy is in trouble, and consumer confidence is in the toilet, a recession could hit the U.S. by June 2020, according to MarketWatch. Federal Reserve Chairman Jerome Powell claims the economy is healthy, but Trump told the press Powell is an enemy for not cutting interest rates to zero or below zero.
China continues to protect its assets as they watch Trump spiral out-of-control. The Central Bank of China keeps buying gold to hedge against its major dollar holdings, according to Bloomberg. The Chinese central bank bought 100 tons of gold over the last 10 months. According to precious metal analysts, China will continue to buy gold now that geopolitical issues and protectionist policies continue to upset the global marketplace.