China and the US Come To Deal on Rice

China and the United States were negotiating some recent economic policies this week, but those talks mostly appeared to have fallen through without much progress in Sino-American relations.

However, a new announcement indicated that the rice market in China is being opened up to American companies for the first time. China first opened up twenty years ago, namely for Asian suppliers. China is the largest consumer of rice in the world and opening up these markets to American producers should allow them to increase revenues.

China imports about five million tons of rice per year, spending up to $1 billion when doing so. This is more than the United States exports which is approximately three to four million tons per year. Still, the deal with the United States will allow the country to diversify away from Asian producers and have several options for importing the stable food in China.

China was previously able to feed itself with rice, but has experienced challenges in doing so, namely in relation to their rapidly aging population which is not able to produce the rice needed by the population. Further, the quality of the soil is depleted and pollution problems contribute to the inability to feed the population with internally produced rice.

The U.S. President, Donald Trump, and his administration, has made a point of attempting to reduce the trade deficit that exists with China by opening up several different industries that China restricts foreign investment with, as well as manipulating their currency. China’s economy is rapidly expanding and growing and is the second largest economy in the world and is poised to become the largest in the next century, namely as a result to their large population.

Chinese officials will inspect U.S. rice supplies before allowing U.S. exporters to import to their country. This may be the first step to opening up a potentially large market.

Latest News Concerning the World Economics and Economic Policy

World economics is the global trade of goods and services in the form of cash. At times, some people refer global economy as the global or international financial system. The rise or fall of the economy is the determining factor for the expansion of international businesses. Consistent stock exchange results in the quick development of the world economy.

Economic policy is the steps taken by various governments in the world to venture into the trade and industrial fields. Additionally, it involves setting heights of interest rates, labor markets, national budgets, tax variations and supply of money. Economic policy is majorly for the thriving of the world economics. Hence, a well set economic policy results in a tremendous growth of the global economy.

Top World Economies

Currently, United States has the best economy in the world. However, its position is lately in a threat by the China’s fast growing economy. The advanced technology, plentiful natural resources, and outstanding infrastructure are the factors that have made U.S feature out as the superpower of the world economy since the beginning of ranking in 1871.

According to the 2017 estimates by the International Monetary Fund’s World Economic Outlook Database, the top ten world economies include United States, China, Japan, Germany, United Kingdom, India, Brazil, Italy, and Canada simultaneously. The nominal rates of the ten economies contribute more than half of the world economy.

China’s Rise and Threat to the World economic Superpower

For the last 30years, the economic development performance of China has been impressive. According to the World financial analysis, China posted the highest gross domestic product surpassing the U.S economy in 2014. Since then, it has been a significant threat to the United States.

United States Financial Plan to Raise Their Economy

The stiff competition from various nations like China makes the U.S economists come up with new unique economic ideas. Currently, they have come up with a strategic plan to improve their economy. The method includes inoculation of capital for the banks to absorb unpredictable losses and to open out Fed’s program to sustain lending of services to the consumers. U.S focuses on maintaining their pace as the economic giants in the globe.

Global Partnership Leads To Increased Lockheed Martin Profits

The changing climate of global politics and the many conflicts taking place around the world have led to the U.S. based defense equipment supplier, Lockheed Martin reporting a major jump in profits across the second quarter of 2017, according to the BBC. One of the major reasons for the growing profits of Lockheed Martin has been the development of the F-35 fighter jet that is currently being completed with the aid of many global partners, including the U.K.

It is thought the increase in profits for Lockheed Martin will signal a global shift towards a greater level of defense funding for many nations who have recently seen their military budgets cut. The rising profits for Lockheed Martin have come as something of a shock to many experts who believed the military based equipment manufacturer had been damaged by the criticism of the company by President Donald Trump during the U.S. Presidential election campaign; Trump had singled out the F-35 fighter jet program as a sign of the wasteful nature of the U.S. Military and Administration of President Barrack Obama.

As one of the partners in the program to build the F-35, the U.K. has looked to place a new order for the Royal Air Force that has added to the profits of Lockheed Martin. The U.K. Military has now ordered an initial 24 F-35 aircraft, which will be known as the Lightning II when they go into service in 2018. The aircraft is seen as a replacement for the iconic Harrier Jump Jet because of the ability of the F-35 to takeoff from a short runway and land vertically.

Israeli and European Startups Attracting Investment Interests

In news that will generate further interest in the European and Israeli startups sector and economy at large, a Luxemburg-based investment firm raised millions of dollars to invest in the Israeli and European economies. The Mangrove V set up by Mangrove Capital Partners raised up to $170 million to invest in the extraordinary and novel technologies emerging from these economies. While the investment fund seems relatively smaller compared to the sums raised by other investment firms for the same purpose, Mangrove Capital Partners’ management believes that it has a great potential of realizing higher returns. Mangrove Capital Partners is the latest investment company to have trained its eyes for the emerging startup markets in Israel and Europe. Others such as Index Ventures, EQT Ventures and Atomico Ventures had earlier laid down markers with a combined investment fund of over $3 billion.

The latest investment forays in the startups in Israel and Europe portend greater economic gains for the startup sector in the target markets and their economies at large. The forays have the potential of improving economic growth and job creation in the economies. It is also an indication of the fast growth of Israeli’s startup sector, which has already seen many startups acquired by big corporations in deals worth billions of dollars. Mobileye recently set the pace in the sector when it was acquired in a deal worth a mouth-watering $15 billion by Intel. It will motivate local innovators to develop revolutionary ideologies that will hit the magical and coveted $1 billion mark in acquisition fees. For Mangrove Capital Partners investors, the recent successes with startups acquisition in Israel should ease their mind when it comes to getting a return on their investments. The company’s investments in two startups in one of the world’s fastest growing hi-tech economy saw the company realize over a hundred fold return on investment.

Economic Talks Between US and China Fall Apart

Talks with China appear to have broken down over revising the economic policy and opening up China to more trade with the United States. In scheduled talks, Wilbur Ross and Steve Mnuchin broached the topic of opening up China to more United States competition which the Chinese government has balked at.

China is currently protecting many facets of their economy, thereby protecting jobs in their country. The United States currently does not have any tariffs or restrictions on Chinse companies operating in the United States which many individuals have indicated lead to unfair treatment on the part of China.

The United States has been attempting to ease these regulations as well as confront China about currency manipulation that places United States exporters at a disadvantage to the United States. Many are indicating that the United States should implement new tariffs to combat these forms of governmental support.

President Donald Trump has indicated his intention to place a 55% tariff on Chinese goods, though many are attributing this to bluster and think a course of action such as this unlikely. China would likely reply with a tariff of their own which could have a major impact on the world economy. A trade war between the United States and China could potentially push the world economy into a recession and threaten many notable industries that the U.S. has significant exports to China including soybeans, technology, and a wide range of food products.

Wilbur Ross and Steve Mnuchin announced that the talks with China will continue and believe that their differences will be ironed out to the mutual satisfaction and benefit of both China and the United States. While talks will continue, they will do so absence of any concrete results from these discussion, along with much uncertainty about the future of Chinese and American economic relations.

The Budding State of Economy in America Attracts Legislators

According to a Washington report posted on Thursday, America is vastly showing an exceptional economic growth following several investment schemes. In regards to this, the American senators ignored issues that were raised by the chairwoman of the Federal Reserve, Janet Yellen. Instead of addressing economic issues, most questions were channeled towards regulatory concerns. This was a meeting dubbed the banking committee of senates. According to most Republicans, Yellen was consulted to allow the elimination of some stringent rules imposed on most financial institutions. This was after the financial crisis that was marked in 2008. Most Democrats on the panel pushed her to state the importance of affirming the regulations.

Opinion

Yellen is prominent for her instrumental role in rebuilding most regulations. In the meeting, she stated that she was proud of her input to the systems. Yellen said that since the financial crisis in America, she had done outstanding work in support of the financial system. This was in order to create a resilient as well as reliable financial structure for citizens. Yellen told the committee that there are rollbacks that may contribute to the setbacks that the Trump administration has proposed.

Conclusion

To clear the air on economic regulations, Yellen was careful to state that some rules are too strict for operations. She also highlighted her willingness to call for changes. According to Yellen, she supports the regulation of banking institutions in community banks. This is a renowned idea for most citizens. Yellen hardly commented on monetary policies. According to the benchmark raised by the Federal department, the people will enjoy reduced bonds this year. In her opinion, the economy is in stellar health, and no kind of interference will contribute to its interference anytime soon. According to Yellen, the Federal department is keen on the progress of the economy. Yellen is hopeful that the regulations will not interfere with the progress of the economy.

Brexit: UK Faces Economic Slowdown

UK has been facing a substantial economic slowdown since it exited the European Union. As reported by Independent, Britain’s GDP growth is forecasted to fall from this year’s 1.5 percent to 1.4 percent in 2018.

Citing financial analysts from Credit Suisse, a global financial services company, a report by the business insider has revealed that UK might plunge into a recession from the end of 2017. Sonali Punhani and Neville Hill, analysts from Credit Suisse, argue that despite the chances of the recession being small, there is a 38 percent probability that a technical recession might hit the country.

The analysts’ argument is based on the fact that a technical recession occurs when a country’s economy fails to thrive for two successive quarters. Reports from the Swiss banking giant indicate that UK’s economy grew by a mere 0.2 percent during the first quarter of this year with the bank’s current forecasts showing that UK’s economic growth will stagnate at 0.2 percent during the second quarter.

On top of the stagnated economic growth, UK’s turbulent political backdrop, and its dubious Brexit negotiations are possible factors that are likely to fuel the country towards a recession.

Credit Suisse’s new predictions come just a few months after forecasting another recession that never happened. With respect to the previous forecasts, the financial service provider admitted that their recession report was amiss. They also admit to have made errors while modeling the country’s growth. The analysts also revealed that UK’s consumer spending was better than they had predicted.

What’s Happening To The World’s Economy?

The world’s economic situation is going through a monumental change, according to economists. The wealthy and powerful nations are not as important on the world’s economic stage thanks to China and other Asian countries. But Asia is not the only fly in the economic ointment. Brazil, Mexico, South Africa, and India are also playing a role in the declining importance of wealthy nations on the world’s economic stage. Emerging countries are more important because they can produce products that cost less. Plus, there is a population explosion in emerging markets.

Economic convergence is the result of technological advancements in emerging markets. Technology is playing a major role in the shift of economic power. And according to Northwestern University’s social science Professor, Robert Gordon the U.S. economy is not as productive as was during the years between 1920 and 1970. The United States had productivity growth from 1994 to 2014 thanks to the Internet, but that productivity is ancient history, according to Professor Gordon.

So what is the prognosis for the world’s economy? One thing is sure. Globalization is not breaking down. It is reshaping itself. By the year 2022, economic output in Asia will be the same as the output in the wealthy Western countries. China’s share of the world’s economic output will jump to more than 20 percent, and India’s output could jump by more than 10 percent by 2022.

The other factor that will shift economic power to emerging markets in Asia is population growth. The share of the world’s population in the wealthy Western countries went from 27 percent in the 1950s to 15 percent in 2015. China’s share is 19 percent, and India’s share will be more than any other country, by the end of 2025. African countries will also increase their population share over the next five years. Africa’s population share could be more than 20 percent by 2025.

U.S. China Economic Relations Are Good Because Trump Is Playing Nice With China

When Donald Trump was flying around the country giving speeches to promote his candidacy for president, he was quick to call China a currency manipulator. And he didn’t mince words when he said he would impose sanctions on China. Both of those brash statements are just thunder at this point and there’s no sanction rain in sight.

The Chinese president is getting a lot of compliments from Mr. Trump. Plus, Trump’s Commerce Secretary, Wilbur Ross, and his Treasury Secretary, Steven Mnuchin, recently met with Chinese officials and it was a cordial meeting. Some Washington insiders say Trump is trying to play nice so China can keep North Korea under control.

But the shaky bromance between the U.S. and China is slowly deteriorating. China won’t or can’t keep North Korea from making threats. Plus, the reopening of beef exports to China is not enough to balance the trade deficit with China. The trade deficit keeps getting larger on Trump’s watch. China exports $360 billion more good to the U.S. than the U.S. exports to China.

The friction between the two largest economies on the planet is increasing every day. The South China Sea, as well as the trade deficit, and the North Korean issue will force Trump to get into true Trump mode before 2017 ends, according to some state officials. But the Chinese know it is only a matter of time before Trump tries to balance trade. He also wants to stop China from manipulating their currency in order to make Chinese products less expensive on the world market.

The Chinese economy is growing twice as fast as the U.S. economy, and if Trump puts sanctions on Chinese imports, consumers will pay the price, and U.S. economic output will suffer, according to some economist. Most economists think Trump will make a move against China after the Russian debacle goes away, and he gets his healthcare agenda and his budget on the right track.

China’s and the U.S. Economic Policy: The World’s Strongest Nations are Planning Ahead

China has the world’s second largest economy and the United States is the world’s premiere economic nation. Both of these countries wield considerable influence across the globe. China’s primary trade partners are Hong Kong, Japan, South Korea, Germany, Vietnam and of course the United States.

The United States has trade partners as well. The nations they primarily do business with include Canada, Japan, Mexico, the European Union and China. Both of these nations are the top two economic powers in the world. However, they do not agree on a lot of economic and business policies and issues in general.

China has a growing national debt that is threatening its stability. The U.S. is struggling with slow economic growth and productivity. Both nations have to trade with each other and they both have to establish policies that will help each other and other nations around the world.

America has to proceed with caution with how it deals with China. They do not want to make trade difficult with this nation, otherwise they could inadvertently cause China import prices to rise. This in turn would force the average American person to pay more money for the products they consume. Don’t forget that China makes a lot of the products that American people use.

Chinese people have to be mindful about cutting out the prosperity that the U.S. brings to their nation. With at least 300 million people living on less than $3.10 a day, China needs to keep creating products for the U.S. so that more jobs will become available for their population.

The two governments are set to discuss their economic policies and difference at a conference in July of 2017. They will try to figure out what will be the best policies to use regarding trade, economic stability and growth. This gathering between both nations is extremely important because they will in fact be creating policies that will impact the rest of the world. More information about China’s and America meeting is available in Fortune.