The following is a review of a business article published on the Investor’s Business Daily written by Graham Jed. Titled “China Trade Talks Hit Snag Despite Beijing's $1 Trillion Offer; Dow Jones Falls,” the article gives a clear analysis of the current geopolitical influence on the world economy. The article documents that trade talks between China and the United States of America have faced a significant drawback with regard to the protection of individual properties. This, however, does not come as a surprise because Beijing had already placed an offer to import goods worth an unbelievable one trillion dollars from the U.S. According to Graham (2019), this is an indicator that China has the intentions of using its wallet to avoid making significant changes to its state-run economy. The motive is to divert more resources towards the pursuit of advanced technologies.
The article critically analyses if the trade offer is quite realistic. Graham (2019) notes that this offer seems too good to be realistic. In May last year, China offered to purchase an additional seventy billion dollars worth of imports over a period of years. President Donald Trump contemplated this offer as a way of bridging the trade gap between the two countries. This offer, however, as reported by U.S negotiators might not happen because the Chinese commitments are far much stretched into the future.
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This article interests me because it points to the future direction of the global economy in 2019. So far there have been speculations over an imminent trade war between China and the United States which in essence would disrupt the global economy. Additionally, the article outlines that China’s economy is slowing while America is trying to recover from a glitch in December’s stock market. In this manner, I believe that the speculated trade war between the two countries will be abated.
Reference
Graham, J. (January, 2019). China Trade Talks Hit Snag Despite Beijing's $1 Trillion Offer; Dow Jones Falls. Investor’s Business Daily. Retrieved from; https://www.investors.com/news/economy/china-trade-deal-offer-to-trump-lifts-dow-jones/
