Yellen stated at a meeting held by Reuters on December 2 that imposing tariffs of up to 25% on Chinese goods worth hundreds of billions of dollars each year "really leads to higher domestic prices." She said that some of the tariffs imposed on Chinese goods exported to the United States during Trump's tenure "have no substantive strategic reasons, but they have created trouble."
Yellen said that lowering the above tariffs by restarting the exclusion process may help ease inflationary pressures, "this is also what we are working on."
At the end of last month, former U.S. Secretary of the Treasury Jacob Lu also expressed his view of easing inflationary pressures by abolishing tariffs on Chinese goods. He believes that tariffs are not an effective way to deal with U.S.-China trade issues.
The Moody's Investor Service report believes that more than 90% of the additional cost of tariffs imposed on China will be borne by US importers. According to data from the US Department of Labor, the US consumer price index rose 6.2% year-on-year in October, the largest year-on-year increase since November 1990.
General Administration of Customs: The total value of Sino-US trade in the first 10 months was 3.95 trillion yuan, an increase of 23.4%
On November 7, the General Administration of Customs released my country’s import and export data for the first 10 months of this year. Statistics show that my country's imports and exports with major trading partners such as ASEAN, the European Union and the United States have increased. In the first 10 months, ASEAN was China's largest trading partner. The total trade value between China and ASEAN was 4.55 trillion yuan, an increase of 20.4%, accounting for 14.4% of China's total foreign trade value. Among them, exports to ASEAN were 2.5 trillion yuan, an increase of 19.1%; imports from ASEAN were 2.05 trillion yuan, an increase of 22.2%; the trade surplus with ASEAN was 448.51 billion yuan, an increase of 6.6%.
The EU is China's second largest trading partner, with a total trade value of 4.34 trillion yuan with the EU, an increase of 20.4%, accounting for 13.7%. Among them, exports to the EU were 2.69 trillion yuan, an increase of 23.4%; imports from the EU were 1.65 trillion yuan, an increase of 15.8%; the trade surplus with the EU was 1.04 trillion yuan, an increase of 38%.
The United States is China's third largest trading partner. The total value of Sino-US trade is 3.95 trillion yuan, an increase of 23.4%, accounting for 12.5%. Among them, exports to the United States were 3.01 trillion yuan, an increase of 21.8%; imports from the United States were 936.74 billion yuan, an increase of 28.9%; the trade surplus with the United States was 2.08 trillion yuan, an increase of 18.9%.
Japan is China's fourth largest trading partner. The total trade value between China and Japan is 1.98 trillion yuan, an increase of 10.8%, accounting for 6.3%. Among them, exports to Japan were 880.87 billion yuan, an increase of 9%; imports from Japan were 1.1 trillion yuan, an increase of 12.3%; the trade deficit with Japan was 220.37 billion yuan, an increase of 28.2%.
During the same period, my country’s total imports and exports to countries along the “Belt and Road” was 9.3 trillion yuan, an increase of 23%. Among them, exports were 5.27 trillion yuan, an increase of 21.9%; imports were 4.03 trillion yuan, an increase of 24.5%.
International Monetary Fund: U.S. inflation rate has reached its highest level in 31 years
On December 3, the International Monetary Fund, headquartered in Washington, USA, published an article stating that with the uncertain prospects for economic recovery and high inflation caused by the mutant strain of the new crown virus, Omi Keron, the U.S. monetary policy should pay more attention to inflation. risk.
The International Monetary Fund pointed out that it is expected that by the second half of next year, the shortage of the global supply chain will be alleviated, but due to the influence of Omi Keron strain and other factors, high inflation is likely to last longer than previously expected.
According to the latest data, the U.S. inflation rate reached 6.2% in October this year, which was much higher than the Fed’s 2% target, and it also created a new high since 1990.
At the Fed meeting in early November, the Fed stated that it would start reducing the scale of asset purchases at a rate of $15 billion per month, but Fed Chairman Powell also said that this action should not be interpreted as a sign of an imminent rate hike.
On November 30 and December 1, Powell admitted in his testimony to Congress that inflation in the United States may last longer than previously expected. For this reason, the Fed will use relevant tools to ensure that inflation will not continue to stubbornly. Public opinion believes that this is an obvious change in attitude. For several months, Powell has been claiming that the increase in inflation is "temporary" and the Fed will remain patient with this and will not rush to raise interest rates.
According to the Fed’s latest dot plot, it is estimated that there will be seven interest rate hikes by the end of 2024.
The UK economy grew by 1.3% in the third quarter, and the growth rate slowed sharply
On the 11th local time, British official data showed that the country's economic growth rate in the third quarter of 2021 was 1.3%.
According to reports, the National Bureau of Statistics of the United Kingdom stated in a statement that the country’s economic growth rate in the second quarter of 2021 was as high as 5.5%, but it was only 1.3% in the third quarter, and the economic growth rate has slowed sharply.
According to the report, the rapid recovery of the British economy in the second quarter was mainly due to the lifting of a series of blockades against the new crown epidemic.
However, the British Sky News website pointed out that due to weak consumer spending and continuous decline in retail sales and other reasons, this recovery momentum was affected in the third quarter.
United Nations: Palestine's economic and financial situation is rapidly deteriorating
A report released on the 11th stated that the Palestinian National Authority and the Palestinian people are facing ongoing economic and financial crises and must be dealt with by systematic measures.
The report pointed out that the economic and financial situation in the occupied Palestinian territory is extremely severe. In 2020, the per capita gross domestic product (GDP) of the West Bank has fallen sharply, from nearly US$5,000 in 2019 to a level slightly higher than US$4,000; the unemployment rates for men and women are nearly 20% and about 30%, respectively. The situation in the Gaza Strip is even more severe, with per capita GDP falling to just over $1,000; the unemployment rate remains high, with the unemployment rate for men around 40% and the unemployment rate for women exceeding 60%.
While the economic situation is bad, the government development assistance (ODA) received by Palestine is also declining year by year. The ratio of ODA to Palestinian gross national income reached a high point in 2009, close to 35%; after that, it continued to decline, dropping to about 11% in 2019. In addition, Israel continues to deduct and hold part of Palestinian customs clearance income. The United Nations Special Coordinator for the Middle East Peace Process, Tor Wennesland, said that the Palestinian National Authority is increasingly unable to afford its minimum expenditures, let alone critical investments in the economy and the Palestinian people.
In view of the severity of the current crisis, the report calls on the Israeli government, the Palestinian National Authority and the international community to work together in the next few months to adopt comprehensive response measures, including three key points. First, resolve the current economic and financial situation facing the Palestinian National Authority, strengthen Palestinian institutions, and focus on the provision of public services in the near future. Second, to consolidate the ceasefire in the Gaza Strip that began on May 21 this year and support the economic development of the Gaza Strip. Third, promote a sustainable and inclusive economic recovery and improve the livelihoods of all Palestinians, including women, the poor, young people, refugees and other vulnerable groups.
The report warned that the situation throughout the occupied territories is still very fragile. Further measures should be taken to ease the tension in East Jerusalem and continue to maintain the ceasefire in Gaza. Israel should stop settlement activities and settler-related violence, demolition and deportation operations, and stop operations that may damage the prospects of the Palestinian National Authority and the "two-state plan."
Vinneslan emphasized that short-term remedies that focus on stabilizing and managing recent crises are necessary, but not enough. In order to make progress on key political issues and make progress in various fields sustainable, all parties need to change policies and carry out governance and socio-economic reforms. He warned that unilateral actions would exacerbate developments or fuel conflicts and endanger the prospects for improving the situation.
