US-China Trade Dispute Worries Investors
The latest United States and China trade dispute has worried investors and affected stock prices and the indexes that measure them.
Among Asian countries, China's Shanghai stock index fell nearly 3.8 percent while Hong Kong's Hang Seng index lost nearly 2.8 percent.
On Tuesday, the U.S. Dow Jones Industrial Average opened more than one percent lower.
U.S. President Donald Trump said Monday that he had asked the U.S. trade representative to identify Chinese products that would face a new 10 percent tariff. The president said the new tariffs would affect $200 billion dollars in goods.
The president said the tariffs were in reaction to China's decision to place similar import taxes on $50 billion in U.S. goods. The move was a response to Trump's decision to add a 25 percent tariff on $50 billion worth of Chinese goods last week.
China's commerce ministry strongly criticized the latest move saying it does not follow "the consensus reached by both sides" during negotiations. The two sides have been involved in negotiations with China offering to buy $70 billion dollars in U.S. goods.
Trump has blamed the trade imbalance between the two countries for the loss of American jobs. China's trade surplus with the U.S. last year was about $375 billion. Trump said he hopes to cut the trade deficit with the increased tariffs.
The treatment of intellectual property remains a disputed issue between negotiators from both sides.
U.S. Secretary of State Mike Pompeo spoke to a business group in Detroit, Michigan on Monday. He criticized China's trade policies as "predatory." He said China was taking intellectual property at a level never before seen.
Pompeo said he raised the issue with Chinese President Xi Jinping. He said he told Xi that the current system is "not fair competition."
Trump's former economic adviser, Gary Cohn, has warned that a continuing trade dispute could result in higher inflation and personal debt.
However, business expert Derek Scissors of the American Enterprise Institute says the U.S. could gain from the dispute. He notes that the U.S. imports more from China than China imports from the U.S.
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1.trade policies 贸易政策
The Bonded Zone shall follow special trade policies and enjoy preferential investment treatments.
2.gain from 从...中获益
The company didn't disclose how much it expects to gain from the two deals.
3.stock index 股票指数
Stock index futures have two functions, including hedging and discovering price.
4.trade dispute 贸易争端
If there is a trade dispute, we will submit the claim to the arbitration committee for settlement.
5.The president said the tariffs were in reaction to China's decision to place similar import taxes on $50 billion in U.S. goods.
in reaction to 对...作出回应
Officials say two committees will be set up in reaction to the protests.
Five of the fetuses in the study did not move in reaction to the sound and were eliminated from the study.
6.Trump said he hopes to cut the trade deficit with the increased tariffs.
trade deficit 贸易逆差
The trade deficit is hurting the nation's economy.
The recovery in oil sales has exaggerated the improvement on last month's trade deficit.
特朗普指责中美贸易失衡导致美国流失大量就业机会。去年，中国对美国的贸易顺差约为3750亿美元 。特朗普表示，他希望通过提高关税削减贸易逆差 。
周一，美国国务卿蓬佩奥（Mike Pompeo）在密歇根州底特律市对一家商业集团发表了讲话。他指责中国的贸易政策是“掠夺式”的 。他称，中国正以前所未有的水平获得知识产权 。
然而，美国企业研究所的商业专家史剑道（Derek Scissors）表示，美国能够从这场贸易争端中获益。他指出，美国对中国的进口超过了中国对美国的进口 。