The billionaire healing fund manager Bill Ackman said China will have to quickly conclude a trade agreement with the United States because it cannot win a trade war that will make serious damage to its economy.
In an article on X, Ackman said that Beijing “should be strongly encouraged to conclude a trade agreement as quickly as possible”, because the more high prices persist, the more the probability that companies lose confidence in China as a market in which they can get their supplies or produce goods on economically viable conditions. If an agreement is not concluded soon, “each company that has a supply chain based in China is moving it to India, Vietnam, Mexico, the United States or another country,” he said.
“If, instead, China decides obsolete to keep and not negotiate due to pride or other emotional problems, China will undergo much more serious and permanent economic consequences,” said Ackman. “Time is the friend of the United States and the enemy of China in this negotiation.”
The assessment of the hedge fund manager is stealing from those who say that China will be able towithstandThe trade war of President Donald Trump and the general tone ofchallengewho hasbrandBeijing position. President XI Jinping hasrejectedTrump's efforts to put him on the phone, and China said the United States had to showrespectAnd reintegrate the derogatory remarks before the talks between the two countries.
Trump has struck China with 145% prices on most goods since its entry into office, which has encouraged Beijing to retaliate and threaten to erase most of the trade between the biggest economies in the world. However, Bloomberg NewsreportedOn Friday, the Chinese government plans to suspend its 125% tariff on certain American imports, because the economic costs of the trade war weigh on certain industries.
Given the economic damage posed by prices, China and the United States have good reasons to reduce “more judicious” levies from 10% to 20% as quickly as possible, Ackman said. The only thing that stops the reduction in prices “is the fear on the part of the leaders of the two countries to appear weak,” he said.
“The two countries know that the 145% prices should drop now,” said Ackman. “They just try to manage diplomacy so that it is a mutual decision as opposed to a” first “country.”
Ackman, a long -standing donor of the Democrats, has become in recent years a supporter of Trump, supporting him on questions ranging from foreign policy to the fight against anti -Semitism.
This story was initially presented on Fortune.com
