On Tuesday, Chinese President Xi Jinping announced that he will cut China’s hefty tariff’s on foreign cars and improve his nation’s “intellectual property” protections, which brought a huge sigh of relief to economists and investors all over the country. This announcement is a huge sign that President Xi is willing to negotiate and bow down to some of Trump’s demands on trade.
Here’s more from the Associated Press:
Stock markets rallied worldwide on optimism for relief from what has become the most high-stakes trade confrontation since World War II. The Dow Jones industrial average was up more than 400 points in early afternoon trading.
“This is a promising signal that there can be a path forward to address (America’s) concerns without a full-on trade war emerging,” said Stephen Ezell, vice president of global innovation policy at the Information Technology & Innovation Foundation, a think tank that has criticized both China’s aggressive trade practices and President Donald Trump’s confrontational response to them.
At the same time, Ezell and other longtime China observers cautioned that Beijing has promised in the past to open its market and curb hardball tactics to acquire foreign technology without following through on those pledges.
“This is positive, but we need to see action,” Ezell said.
Here’s how Trump responded on Twitter:
Very thankful for President Xi of China’s kind words on tariffs and automobile barriers…also, his enlightenment on intellectual property and technology transfers. We will make great progress together!
— Donald J. Trump (@realDonaldTrump) April 10, 2018
The announcement comes just a few days after China threatened the United States with outrageous tariffs and taxes, some which exceeded 25%, on American products and goods; including meat, vegetables, and cars.
In response, the major 3 stock market indices SOARED:
The S&P 500 jumped by 1.67%, the Nasdaq soared by over 2% and the Dow skyrocketed by 400 points. What a day it was!
The media slightly succeeded in scaring the world into thinking that the economy was going to tank because of Trump’s tough talk on Tariff’s, but President Trump has claimed victory over them once again.
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