United States team to visit China for trade talks

Jeannie Matthews
January 4, 2019

A top economic adviser to President Donald Trump acknowledged Thursday that the trade war is damaging United States businesses with interests in China. "There are a heck of a lot of USA companies that have sales in China that are going to be watching their earnings being downgraded next year until we get a deal with China". Hassett says that Apple and other US companies operating in China, will see their business return in the country if the USA can have a successful negotiation with China.

Apple's announcement "is something that one should expect", Hassett said.

"If we have a successful negotiation with China, then Apple's sales and everybody else's sales will recover", Kevin Hassett, chairman of the council of economic advisers at the White House, said in an interview with CNN.

Hassett said the recent slowdown in China's economy is equivalent to a recession in the U.S. However, the disruptions to U.S. businesses that are rattling the market are only temporary, he said, and it will be back to business as usual once a deal is reached.

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A couple of factors have created the weak sales environment in China for the Apple iPhone, which led Apple to cut its guidance on fiscal first quarter revenue.

Apple CEO Tim Cook said in a letter Wednesday that "rising trade tensions" with the U.S. are impacting China's economy, prompting "deceleration" in the Asian superpower. Apple shares fell as much as 9.6 per cent as the market opened in NY on Thursday. The longer their trade war lasts, the longer companies and consumers will feel the pain of higher-priced imports and exports.

This content was republished with permission from CNN.

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