The multimillionaire coverage fund manager Bill Ackman said that China will need to reach a commercial agreement with the United States quickly, since it cannot win a prolonged commercial war that will make serious damage to its economy.
In a publication about X, Ackman said that Beijing “should be highly encouraged to make a commercial agreement as quickly as possible” because the longer rates persist, the greater the probability that companies will lose faith in China as a market in which they can obtain or produce goods in economically viable terms. If an agreement is not reached soon, “all companies that have a Chinese headquarters in China relocate it to India, Vietnam, Mexico, the United States or some other country,” he said.
“On the other hand, China stubbornly decides to maintain and not negotiate due or other emotional issues, China will suffer so many much more severe and permanent economic consequences,” Ackman said. “Time is the friend of the United States and the enemy of China in this negotiation.”
The evaluation of the coverage fund manager goes against those who say that China will be able to resist the commercial war of President Donald Trump and the general tone of challenge that has marked the position of Beijing. President Xi Jinping has rejected Trump’s efforts to take it on the phone, and China has said that the United States must show respect and control derogatory comments before conversations can begin between the two countries.
Trump has hit China with 145 percent tariffs in most goods since he assumed the position, which led Beijing to retaliate and threatening to eliminate most of the trade among the largest economies in the world. Even so, Bloomberg News reported Friday that the Chinese government is considering suspend its 125 percent
Given the economic damage raised by tariffs, both China and the United States have good reasons to bring to the taxes “to a more sensible level” or 10 percent to 20 % possible, Ackman said. The only thing that stops the reduction of tariffs “is the fear on the part of the leadership of both countries that seem weak,” he said.
“Both countries know that 145% tariffs have to go down now,” Ackman said. “They are just trying to handle diplomacy in such a way to make it clear that it is a mutual decision instead of a country that” goes first. ”
Ackman, a donor of the Democrats for a long time, has become a Trump defender in recent years, supporting him on issues ranging from foreign policy to the combination of anti -Semitism.
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Posted on April 27, 2025