— Three-day discussion between United States (US) and China officials in Beijing on trade tariff
, wrapped up Thursday (01/10). But there is no clear outcome published at the meeting.
Chinese Ministry of Commerce only stated that both parts had detailed exchanges and maintain close contact. Same with the US official that mentioned about waiting for guidance on the next steps after reporting back to Washington.
It said, both sides have made progress on additional Chinese purchases of US’ agricultural goods, energy, also manufactured products. Otherwise, and opening China’s markets further to American capital.
Before, there is an optimism over the meeting, as US expects balanced and reciprocal trade agreement
with China. Previously, American President Donald Trump tweeted that the talks were going very well.
The talks itself was the first face-to-face meeting held since Trump and Chinese President Xi Jinping agreement on 90-days trade ceasefire, in Argentina, Dec. 1, 2018. During the trade war, US has imposed US$250 billion tariff on Chinese imports, while China retaliated by imposing $110 billion tariff on US’ goods.
On the same day with the US-China talks, North Korean leader Kim Jong Un met Chinese President Xi Jinping. Its reported, the talks also involved US administration.
This is Kim’ fourth visit to Beijing, as he asked for China’ suggestions over the denuclearisation
deal and US sanction for North Korea. Previously in a new year remarks, Kim said he welcomes another meeting with Trump.
Various global issues has give uncertainty in the market. Recently, World Bank predicts predicts that global economy will only grow 2.9 percent this year, lower than previous projection in 2018 at 3 percent. The economic slowdown is an impact of the anemics international trade and manufacture activities.
The Fund highlighted the unsolved US-China trade war
tension. If the tension continues, it will give a lot of pressures not only for US and China economic growth, but also corporate investment strategies on value-chain.
Other than that, global monetary tightening policies can also carry out lower economic growth for emerging countries, as Federal Reserve’s signal over higher borrowing costs potency caused by the benchmark rate hike. And the borrowing cost can grow investor’s risk-aversion and halt capital inflow to emerging countries.
Emerging countries are prone to global risks such as central bank policies tightening and slowing down trade. World Bank projected, emerging countries economy will growth by 4.2 percent in 2019. The estimation is lower than its previous projection in June 2018 at 4.7 percent.
The economic slowdown
shows the continuing impact on financial market pressure. Moreover, many countries are facing huge trade balance deficit.
This challenges for Indonesian government. Recently, Finance Minister Sri Mulyani Indrawati has called for united efforts among all business players and the government to strengthen Indonesian economy amid mounting global pressures.
The former managing director of the World Bank pointed out that Indonesia is known by other countries as having positive economic foundation. The global business players still believe in Indonesian economy, which is growing strongly with lower inflation, lower deficit of state budget, and the government’s strong commitment to continually reform.
Regarding the global pressures, Chairman of Indonesian Entrepreneurs Assocication’ Hariyadi Sukamdani saying that such condition has affected businesses. But, he called all businessmen to be strongly committed to keeping their businesses amid the global turbulences.
Written by Linda Silaen and TIS Intelligence Staff