United States - China' trade talks suffered a major setback last week - Photo: Special

JAKARTA (TheInsiderStories) — Good morning! White House economic adviser Larry Kudlow said that the United States (US) demanded concrete changes on China’ law, as the trade talks suffered a major setback last week. At the meeting China proposed extensive revisions to a draft agreement.

US wanted to delete prior commitments that Chinese laws would be changed to enact new policies on issues from intellectual property protection to forced technology transfers. While, China Vice Premier Liu He argued that China could accomplish policy changes through decrees issued by its State Council or cabinet.

But Trade Representative Robert Lighthizer rejected that, telling Liu that the US was insisting on restoration of the previous text. Kudlow predicted that the impact on US jobs and growth from higher tariffs assessed on Chinese goods would be minor, while conceding that both sides will suffer from the trade war.

He said, China will suffer GDP losses and so forth with respect to a diminishing export market. China has invited Lighthizer and Treasury Secretary Steven Mnuchin back to Beijing, with no date has been set so far for fresh talks. There’s a strong possibility that Trump will meet with Chinese President Xi Jinping at a G20 summit in Japan late June.

Indonesia Coordinating Minister for Economic Affairs Darmin Nasution considered that Indonesia and China trade could be beaten, impacted by the unsolved US – China trade war. He projected that Indonesia trade balance with China will decline for both exports and imports.

Even so, Indonesian government is still optimistic in reaching 5.3 percent economic growth this year, by boosting priority industries such as food and beverage, textile and clothes, automotive, electronic devices, and chemical.

Last week, Indonesia decided to stop diesel and aviation turbine fuel import starting next month to narrow current account deficit (CAD). Recently, Indonesia is still burdened by the deficit in oil and gas sector. In the first quarter of 2019, Indonesia recorded US$6.97 billion CAD or equal to 2.6 percent of Gross Domestic Product (GDP).

Indonesian currency has consistently weakened during last week. On the last day of trade, Rupiah against US Dollar depreciated by 0.06 percent to 14,319.50.

Ahead of this week, Indonesia will announce trade balance data on Wednesday. On Thursday, Bank of Indonesia will decide the 7-Day Reverse Repo rate after two days meeting. And the least, Indonesia foreign debt statistic will be published on Friday.

Then, United Kingdom will have average earnings index and claimant count change data. While its neighbor country Germany is going to announce the GDP. From the broader region, Europe will release consumer price index data.

Beside, US will still be major concern this week amid the unsolved trade war with China. Other than that, US also have retail sales, crude oil inventories, building permits, and Philadelphia Fed manufacturing index.

There will also be tTreasury Department’ semiannual Report to Congress reviews developments in international economic and exchange rate policies across the US’ major trading partners.

May you have a profitable week!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia