Trump’s picks prompt hope of pragmatism on trade, currency
Team of corporate executives might bring prudence to policymaking, experts say 53, a private equity investor, hedge fund manager and Hollywood financier who spent 17 years at Goldman Sachs before leaving in 2002
As current and former corporate executives dominate the economy-related posts of US president-elect Donald Trump’s incoming administration, observers voiced hopes that Trump’s picks will exercise pragmatism and professionalism to help avoid a trade or currency war between the world’s two largest economies.
Although minor economic friction or bargaining will be inevitable, the new Cabinet should make it a priority to address the anxiety in business
Some of Trump’s selections for top jobs in his administration
SECRETARY OF STATE Rex Tillerson, 64, chairman and CEO of Exxon Mobil Corp circles in the United States and China prompted by Trump’s controversial remarks, experts said. China is the US’ largest trade partner.
Trump’s key Cabinet picks as of Wednesday include Rex Tillerson, chairman and CEO of Exxon Mobil Corp, for secretary of state and Steven Mnuchin, who spent 17 years at Goldman Sachs, as Treasury secretary.
Wang Jianlin, CEO of China’s property-to-entertainment conglomerate Wanda Group, warned at a forum over the weekend: “I have over $10 billion in investments in COMMERCE SECRETARY Wilbur Ross, 79, heads the private equity firm W.L. Ross & Co. His net worth was pegged by Forbes at about $2.9 billion. the United States and employ over 20,000 people. If things are mishandled, they will have nothing to eat.”
David Shogren, president of US International Foods, a company exporting many products to China, told Agence FrancePresse on Tuesday, “My fear is whatever changes Trump makes ... that China will retaliate in some ways.”
Pang Zhongying, a professor of international relations at Renmin University of China, said the corporate leaders in Trump’s administration, knowing clearly the benefits of globalization and having benefited from it, will introduce self-adjustment if Trump intends to change economic policies.
Although many see Trump’s LABOR SECRETARY Andrew Puzder, 66, chief executive officer of CKE Restaurants Inc, which runs the Carl’s Jr. and Hardee’s fast-food chains election victory as a sign of the “retreat of globalization”, any flowing back of production work to the US will face the reality of higher labor costs, and the jobs will then flow back out again, Pang predicted.
Wu Xinbo, director of the Center for American Studies at Fudan University in Shanghai, said the former executives among Trump’s Cabinet choices will “inject prudence and pragmatism into policymaking procedures”.
“They know well that it would not do any good if the relationship with China runs into a standoff,” Wu said.
Wu predicted that Trump’s administration “will avoid a direct trade war against China by using tax policies as a leverage to encourage US business- NATIONAL ECONOMIC COUNCIL DIRECTOR Gary Cohn, 56, president and chief operating officer of investment bank Goldman Sachs. es to shift their production lines back to the homeland”.
The Trump administration, seeking greater exports to China, might lift restrictions on exports of oil and gas, while putting pressure on China’s exports to the US by introducing more anti-dumping probes or anti-subsidy measures, Wu said.
Chen Fengying, a researcher on the world economy at the China Institute of Contemporary International Relations, said Trump probably “will not be as casual as he is now” after taking office on January 20, since he could be limited by Congress and his advisers.
Comment in new loans was issued by Chinese banks in November.
Medium- to long-term housing loans issued to individuals totaled 569.2 billion yuan in November, up from 489.1 billion the previous month, while lending to nonfinancial sectors was 201.8 billion yuan, up from 72.8 billion in October.
“Rising demand for corporate lending provided some good news for stabilizing the economy,” said Liu, adding that the data is in line with earlier indicators released by the National Bureau of Statistics.
Retail sales growth picked up to 10.8 percent year-on-year in November, which is the highest level since December last year, according to data released by the National Bureau of Statistics on Tuesday.
Commenting on the mortgage lending that went up month-on-month, Liang Hong, chief economist of China International Capital Corp, attributed strong demand for mortgages to the delayed effect of policies.
More than 20 first- and second-tier cities issued tightened policies to cool down the overheated housing market starting in October.
Data released by the NBS on Tuesday show that growth in home sales slowed to the slowest pace this year in November, and new construction starts rose by just 3.3 percent year-on-year in November, much lower than the previous month.
Liu expected that the proportion of mortgages will decline in the coming months.
Meanwhile, central bank data showed that M2, a broad measure of the money supply that covers cash in circulation and all deposits, grew by 11.4 percent year-on-year in November, while M1, a narrower measure of the money supply, rose 22.7 percent year-onyear.
“The underlying message by the central bank is that it will maintain a relatively loose environment for financing,” said Liang.