Thu. Jan 21st, 2021

Trade wars: Markets rally as China slashes tariffs on 850 products – business live

Rolling coverage of the latest economic and financial news, as China gives the world economy a festive gift

1.51pm GMT

Economics professor Nouriel Roubini reckons that Donald Trump’s trade war with China will rebound on the US.

The west may not like China’s authoritarian state capitalism, but it must get its own house in order. Western countries need to enact economic reforms to reduce inequality and prevent damaging financial crises, as well as political reforms to contain the populist backlash against globalisation, while still upholding the rule of law.

Unfortunately, the current US administration lacks any such strategic vision. The protectionist, unilateralist, illiberal Trump apparently prefers to antagonise US friends and allies, leaving the west divided and ill-equipped to defend and reform the liberal world order that it created. The Chinese probably prefer that Trump be re-elected in 2020. He may be a nuisance in the short run, but, given enough time in office, he will destroy the strategic alliances that form the foundation of American soft and hard power. Like a real-life “Manchurian Candidate,” Trump will “make China great again.”

Related: Trump’s lack of strategic vision is going to make China great again | Nouriel Roubini

1.26pm GMT

China’s vice-premier Li Keqiang has hinted that Beijing could cut its benchmark interest rate.

That’s another sign that the administration wants to stimulate its economy, on top of today’s move to cut tariffs in January.

#China’s Premier Li Keqiang says the government will study cuts in lenders’ reserve-ratio requirements as well as targeted RRR reductions, CCTV reports.

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