Research released by the International Monetary Fund on Friday showed that some of these tariffs hav
e been passed on to US consumers, while others have been absorbed by importers leading to lower profit margins.
US restrictions on high-tech exports to China will push up Washington’s trade deficit with China, an
d rising prices could also reverse the low inflation in the US. Meanwhile, any speculative trading on the
Chinese currency amid its depreciation pressure will “inevitably suffer from a huge loss”, Guo said in his speech.
To eliminate bad outcomes from trade tensions, further opening-up in China’s services sec
tor, together with high-tech development supported by artificial intelligence, will help lift Chinese eco
nomic growth from 6.3 percent to around 7 percent by 2035, said Zhu Min, a former deputy managing director at the IMF.