Bill Akman, the director of the billionaire hedge fund, said that China will need to conclude a trade deal with the United States quickly because it cannot win a traditional trade war that will lead to severe damage to its economy.
In a publication xAkman said that Beijing “must be very motivated to conclude a business deal as quickly as possible” because the longer high definitions continue, and the more likely companies will lose their confidence in China as a market in which they can be issued or produced goods with viable terms economically. If a deal is not concluded soon, “every company has a chain of supplying its headquarters in China to transfer it to India, Vietnam, Mexico, the United States or some other countries.”
“Instead, if China decides to resist and not negotiate because of pride or other emotional issues, China will suffer from more severe and permanent economic consequences,” Akman said. “Time is the friend of the United States and the enemy of China in this negotiation.”
The evaluation of the hedge fund manager fly against those who say China will be able to do soto bearThe trade war of President Donald Trump and the general tonechallengethismarkedBeijing’s position. President Xi Jinpingto rejectTrump’s efforts to make him on the phone, and China said that the United States should appearrespectAnd curbing the consuming notes before the talks between the two countries started.
Trump struck China with 145 % definitions on most goods since he took office, prompting Beijing to take revenge and threat to eliminate most of the trade among the world’s largest economies. However, Bloomberg NewsI mentionedOn Friday, the Chinese government is considering suspending its tariff of 125 % on some American imports as the economic costs of the trade war affects some industries.
Akman said that both China and the United States have good reasons for lowering the fees “to a more rational level” from 10 % to 20 % as quickly as possible. He said that the only thing that stops the low definitions “is the fear of the leadership of both countries.”
Akman said: “Both countries know that the 145 % customs tariff should decrease now,” Akman said. “They are only trying to manage diplomacy in such a way to clarify that it is a mutual decision instead of one country” go first. “
Akman has long been the donor to Democrats, in recent years, in support of Trump, as he supported him on issues ranging from foreign policy to combating anti -Semitism.
This story was originally shown on Fortune.com
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