Uncompromising messages from Beijing this week suggest that China’s leaders have concluded that there in no prospect of a resolution to the trade war any time soon. Limits on China’s rare earth exports, sanctions on US firms, a weaker renminbi and restrictions on China’s services imports from the US are now all on the table. In the coming week, May’s trade data will reveal the initial impact of the increase in tariff rates from 10% to 25% that was introduced on $200bn of goods midway through the month, while the inflation data will be scrutinised for evidence of the spread of swine fever.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services