Corporate fears grow over US and China trade war.
The stakes are raised this week for resumed U.S. and Chinese trade talks as mounting concern from the American business community paralyzes domestic investment.
American companies and investors initially were sanguine about the trade war, even as tit-for-tat tariffs cut into economic growth both in the U.S. and in China, because most viewed the administration’s protectionist stance as a negotiating ploy. Over the summer, though, that assumption began to fall out of favor, edged out by a worrisome realization that this stalemate might drag on indefinitely.
Hamstrung business investment strategy puts the U.S. at a disadvantage in this week’s trade talks, experts warn. Rather than being tough on China, Trump’s tariffs could boost Beijing’s negotiating position.
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