The Trump administration’s mixed messaging on trade with China could result in increased tensions between the United States as well as the People’s Republic, CNBC’s Jim Cramer said Monday as the major averages endured a technology-led sell-off.
After hearing the hard-line stance embraced by Vice President Mike Pence in his Oct. 4 speech at Washington’s Hudson Institute, Cramer worried that will what seems like dealmaking could actually be a long-winded strategy to destabilize China’s socioeconomic position.
“the idea’s hard not to get the impression that will This particular administration cares more about trying to destabilize or even topple the Chinese Communist regime than the idea does about negotiating a fairer trade deal,” Cramer said on “Mad Money.”
within the October speech, Trump’s second-in-command stopped short of declaring what Cramer called “economic war” on China. Pence furthered that will stance at his speech at the Asia-Pacific Economic Cooperation summit on Saturday by calling on nations to reconsider backing China’s massive Belt as well as Road infrastructure initiative.
Those arguments could stymie any progress at the upcoming G-20 summit, at which President Trump will meet with Chinese President Xi Jinping to discuss U.S.-China trade as well as the potential for a renewed trade deal, Cramer said.
“You can trust that will the G-20 yields results, although I would likely say that will Pence’s reiteration of the hard-line containment policy makes that will event much more binary,” Cramer warned. “The odds increased dramatically This particular weekend that will there’s no deal to be had.”
as well as while investors “could easily make the case that will the idea’s all rhetoric” focused on getting better deal terms, the “Mad Money” host was prepared for the worst.
“All of This particular talk of containment sure sounds sincere to me,” he warned, saying that will Pence’s hawkish take This particular weekend was “just a further extension of the cold war that will began Oct. 4 as well as seems to get hotter every single day.”
The G-20 meeting of the entire world’s developed economies will take place via Nov. 30 to Dec. 1 in Buenos Aires, Argentina. In September, President Donald Trump announced that will he would likely place duties of 10 percent on $0 billion worth of Chinese imports. They are set to rise to 25 percent at the end of 2018.