China Blinks First American Pharma Microchips Jet Engines Exempted From Chinese Tariffs

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 US has approached China to seek talks over 145% tariffs 
Beijing’s open for discussions, China said 
signalling a potential de-escalation in the trade war.
China quietly created list of US products exempted from retaliatory 125% tariffs 
including select pharma, microchips, jet engines — Reuters reported.
US also expressed hope for progress in easing trade tensions.
Trump said “very good chance” could do a deal with China
after Xi called to adjust to changes in international environment — ReutersMy Comments:  There are hundreds of Boeing jets in service throughout China. Those jets will need spare parts, they will need to service their engines, replace old engines. Otherwise hundreds of Boeing jets will get grounded. Each jet will have at least two engines. 
President Xi Jinping's official airplane is an AIR CHINA, American made Boeing 747.  


Imagine if the spare parts are no more available how will President Xi travel? The Made in China C919 and the (soon to fly) C929 are fantastic planes but the prestige (and size) is not there.
Bottom line : the US and China are two giants who depend too much on each other. Annual two way trade between the two countries is almost US$600 Billion. That is a lot of trade.
But here is the real shocker.Annual two-way trade between China and ASEAN was $982b in 2024 !!  50% more than the US - China trade. So that O'Reilly fellow was completely wrong. The United States has less money compared to ASEAN. 

And US - ASEAN trade is US$520 Billion.
By any measure these are huge numbers. Adding it all up, the total trade between China - ASEAN - US is about US$2.1 TRILLION !!
With these huge numbers, no one in their right mind, not China, not US or ASEAN will want to jeopardise this amount of trade. 
The choice is too simple - either you trade and you and your children live in wealth and luxury or you do not trade and you and your children start eating grass. (Like the stupid monkeys who inhabit the Organisation of Satanic Countries).
The choice is too simple. 
Its a great time to buy good shares. 
The views expressed are those of the writer and do not necessarily reflect those of MMKtT.
By Syed Akbar Ali 

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