On-going U.S.-China trade spat hurting both economies

So it’s been over a year since China and the
U.S. have been going at each other over trade… and latest data show that the trade war has
been hurting both countries’ economies. Our Kim Hye-sung explains. China’s three major electronics goods have
seen production fall amid the prolonged U.S.-China trade war. According to the Korea Electronics Association,
China’s color TVs, semiconductors and smartphone production fell on-year for the month of June. Color TV production fell near two percent
on-year, and 11 percent on-month, to 14 million units in June. It’s the first time in about two years that
production posted on-year negative growth. The report said China’s domestic demand has
entered a mature stage and the on-going U.S.-China trade spat hurt the global trade environment,
driving down China’s exports. Smartphone production also fell point-six
percent on-year to around 150 million units. Semiconductor production also dropped to less
than 15 billion units on sluggish global demand for chips. Auto production and robots production also
nosedived by double digits. The on-going trade war is also weighing on
the U.S. economy. The U.S. Congressional Budget Office said
Wednesday local time the budget deficit is set to hit over one trillion U.S. dollars
by fiscal year 2020,…two years earlier than previously estimated. The CBO said federal debt is rising faster
than expected due to increased federal spending and growing per-capita healthcare spending. It also singled out tariffs as hurting the
U.S. economy as they raise prices, curb investment and increase costs for businesses. The CBO said as a result of tariffs imposed
by the U.S. and others since last year, U.S. GDP would be point-three percent lower by
2020 than it would have been otherwise, and real average household income will be reduced
by 580 U.S. dollars. Since last year, the U.S. and China have already
exchanged tariffs on over 360 billion U.S. dollars of goods. Trump’s new tariffs on another 300 billion
dollars of Chinese imports, including a range of consumer goods, will kick in later this
year. Kim Hyesung, Arirang News.

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