<div>Chinese President Xi Jinping announced bold new initiatives aimed at deepening ties between China and Latin America and the Caribbean (LAC) nations during his address at the fourth ministerial meeting of the China-Community of Latin American and Caribbean States (CELAC) Forum in Beijing.</div>
<div></div>
<div>Xi&rsquo;s remarks come at a time when the region is grappling with increased pressure from the United States, particularly under the Trump administration, as the US continues to intensify trade wars and regional influence efforts.</div>
<div></div>
<div>The developments at the CELAC forum came just one day after the US and China reached a 90-day truce on tariffs, which many analysts view as a significant de-escalation in the ongoing trade war between the two economic giants.</div>
<div></div>
<div>Xi's proposals, which include a substantial credit line and a push for stronger trade and economic partnerships, underscore China's growing ambition to be seen as a more reliable global partner than the US in a rapidly changing geopolitical environment.</div>
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<h2><b>A battle for influence</b></h2>
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<div>In his address, Xi vowed to expand China&rsquo;s influence in the LAC region by offering a 66 billion yuan (approximately $9.2 billion) credit line to support LAC's development. He also announced visa-free access to five countries within the region, though he did not specify which nations would benefit. These moves are part of China&rsquo;s broader strategy to fortify its presence in Latin America.</div>
<div></div>
<div>The Chinese president emphasised that trade wars are counterproductive, stressing that &ldquo;there are no winners in tariff wars&rdquo; and highlighting China&rsquo;s role as an advocate for multilateralism and international fairness. As Latin American nations struggle with the fallout from rising US tariffs under President Trump, Xi&rsquo;s statements underscored Beijing&rsquo;s effort to position itself as a counterweight to Washington&rsquo;s increasingly aggressive and protectionist stance.</div>
<div></div>
<div>Xi also outlined measures to increase Chinese imports of goods from Latin America, especially high-quality products, in an effort to support the region&rsquo;s diverse economies beyond traditional resource exports like oil, iron ore, and soybeans. China has increasingly invested in sectors such as clean energy, telecommunications, and artificial intelligence (AI), sectors where Xi is keen to expand cooperation with LAC countries.</div>
<div></div>
<div>In a nod to the growing demand for infrastructure investments, Xi reiterated China's commitment to supporting regional development projects, with a particular focus on clean energy. China&rsquo;s Belt and Road Initiative (BRI), which has already seen multiple Latin American countries join, was positioned as an opportunity for LAC nations to modernise and diversify their economies.</div>
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<h2><b>China&rsquo;s growing presence irks US</b></h2>
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<div>The US has ramped up efforts to curtail China&rsquo;s growing influence in Latin America. Notably, US Secretary of State Marco Rubio has visited multiple countries in the region, urging governments to limit their ties with Beijing. Meanwhile, US President Donald Trump has accused China of manipulating the region&rsquo;s strategic assets, particularly the Panama Canal, and has sought to restrict Chinese investments in infrastructure projects across the continent.</div>
<div></div>
<div>China&rsquo;s involvement in Latin America, particularly its investments in key infrastructure projects, has become a point of contention in Washington. However, Beijing&rsquo;s expanded role in the region continues to grow.</div>
<div></div>
<div>In his remarks, Xi refrained from directly mentioning President Trump or his administration, but his criticism of unilateralism and protectionism made his stance clear. "Only through unity and cooperation can countries safeguard global peace and stability and promote worldwide development and prosperity," Xi said.</div>
<div></div>
<div>The trade war between the US and China has spilled into Latin America, forcing countries in the region to navigate a delicate balancing act. Many Latin American nations rely heavily on exports to both China and the US, making them vulnerable to the impacts of tariffs and trade restrictions.</div>
<div></div>
<div>One of the most striking elements of Xi&rsquo;s speech was his strong condemnation of "bullying" in international relations. Xi&rsquo;s declaration that &ldquo;there are no winners in tariff wars&rdquo; was a pointed critique of President Trump&rsquo;s aggressive trade policies, which have rattled markets and strained global supply chains.</div>
<div></div>
<div>&ldquo;Bullying and hegemony will only lead to self-isolation,&rdquo; Xi said, emphasising that such tactics were not conducive to long-term global stability. The Chinese leader's remarks echoed the sentiments of many Latin American officials who have grown weary of US economic pressure and political interference. By framing China as an alternative to US economic dominance, Xi aims to offer Latin American nations a pathway toward greater autonomy and prosperity.</div>
<div></div>
<div>This message was further underscored by the participation of prominent Latin American leaders such as Brazilian President Luiz In&aacute;cio Lula da Silva, Chilean President Gabriel Boric, and Colombian President Gustavo Petro, all of whom were present at the forum. These leaders have voiced their support for deeper economic cooperation with China, and some have even joined the Belt and Road Initiative (BRI), which seeks to improve infrastructure and trade connectivity across continents.</div>
<div></div>
<div>Boric, in particular, emphasised the need for a &ldquo;horizontal&rdquo; dialogue between civilizations, one that moves away from authoritarianism and imperialism. His comments reflect the sentiment in many parts of Latin America, where there is growing frustration with US dominance in the region and a desire for more equitable partnerships.</div>
<div></div>
<h2><b>A new chapter for Latin America-China ties</b></h2>
<div></div>
<div>The strengthening of economic ties between China and Latin America is poised to continue, especially as many LAC countries seek to diversify their trade partnerships and reduce their reliance on the US amid growing uncertainties in its policies and its protectionist stance. With the expansion of infrastructure projects and increasing Chinese investment in key industries, the relationship between China and Latin America is evolving rapidly.</div>
<div></div>
<div>Xi&rsquo;s speech also highlighted the role of China as a global leader in emerging sectors like clean energy and high-tech industries. As part of its broader diplomatic outreach, China has sought to position itself as a champion of multilateralism, offering an alternative to US protectionism and isolationism.</div>
<div></div>
<div>In the face of rising US tariffs and mounting pressures, Latin America now finds itself at a crossroads. As China offers financial support, new trade opportunities, and a more multilateral approach, it seems clear that many countries in the region will continue to look eastward for new opportunities.</div>
<div></div>
<div>(<em>With inputs from agencies</em>)</div>

Business & Economy: China to expand influence in the LAC region by offering about $9.2 billion credit line for development and allowing visa-free access to five countries

Chinese President Xi Jinping announced bold new initiatives aimed at deepening ties between China and Latin America and the Caribbean (LAC) nations during his address at the fourth ministerial meeting of the China-Community of Latin American and Caribbean States (CELAC) Forum in Beijing. Xi’s remarks come at a time when the region is grappling with increased pressure from the United States, particularly under the Trump administration, as the US continues to intensify trade wars and regional influence efforts. The developments at the CELAC forum came just one day after the US and China reached a 90-day truce on tariffs, which many analysts view as a significant de-escalation in the ongoing trade war between the two economic giants. Xi's proposals, which include a substantial credit line and a push for stronger trade and economic partnerships, underscore China's growing ambition to be seen as a more reliable global partner than the US in a rapidly changing geopolitical environment. A battle for influence In his address, Xi vowed to expand China’s influence in the LAC region by offering a 66 billion yuan (approximately $9.2 billion) credit line to support LAC's development. He also announced visa-free access to five countries within the region, though he did not specify which nations would benefit. These moves are part of China’s broader strategy to fortify its presence in Latin America. The Chinese president emphasised that trade wars are counterproductive, stressing that “there are no winners in tariff wars” and highlighting China’s role as an advocate for multilateralism and international fairness. As Latin American nations struggle with the fallout from rising US tariffs under President Trump, Xi’s statements underscored Beijing’s effort to position itself as a counterweight to Washington’s increasingly aggressive and protectionist stance. Xi also outlined measures to increase Chinese imports of goods from Latin America, especially high-quality products, in an effort to support the region’s diverse economies beyond traditional resource exports like oil, iron ore, and soybeans. China has increasingly invested in sectors such as clean energy, telecommunications, and artificial intelligence (AI), sectors where Xi is keen to expand cooperation with LAC countries. In a nod to the growing demand for infrastructure investments, Xi reiterated China's commitment to supporting regional development projects, with a particular focus on clean energy. China’s Belt and Road Initiative (BRI), which has already seen multiple Latin American countries join, was positioned as an opportunity for LAC nations to modernise and diversify their economies. China’s growing presence irks US The US has ramped up efforts to curtail China’s growing influence in Latin America. Notably, US Secretary of State Marco Rubio has visited multiple countries in the region, urging governments to limit their ties with Beijing. Meanwhile, US President Donald Trump has accused China of manipulating the region’s strategic assets, particularly the Panama Canal, and has sought to restrict Chinese investments in infrastructure projects across the continent. China’s involvement in Latin America, particularly its investments in key infrastructure projects, has become a point of contention in Washington. However, Beijing’s expanded role in the region continues to grow. In his remarks, Xi refrained from directly mentioning President Trump or his administration, but his criticism of unilateralism and protectionism made his stance clear. "Only through unity and cooperation can countries safeguard global peace and stability and promote worldwide development and prosperity," Xi said. The trade war between the US and China has spilled into Latin America, forcing countries in the region to navigate a delicate balancing act. Many Latin American nations rely heavily on exports to both China and the US, making them vulnerable to the impacts of tariffs and trade restrictions. One of the most striking elements of Xi’s speech was his strong condemnation of "bullying" in international relations. Xi’s declaration that “there are no winners in tariff wars” was a pointed critique of President Trump’s aggressive trade policies, which have rattled markets and strained global supply chains. “Bullying and hegemony will only lead to self-isolation,” Xi said, emphasising that such tactics were not conducive to long-term global stability. The Chinese leader's remarks echoed the sentiments of many Latin American officials who have grown weary of US economic pressure and political interference. By framing China as an alternative to US economic dominance, Xi aims to offer Latin American nations a pathway toward greater autonomy and prosperity. This message was further underscored by the participation of prominent Latin American leaders such as Brazilian President Luiz Inácio Lula da Silva, Chilean President Gabriel Boric, and Colombian President Gustavo Petro, all of whom were present at the forum. These leaders have voiced their support for deeper economic cooperation with China, and some have even joined the Belt and Road Initiative (BRI), which seeks to improve infrastructure and trade connectivity across continents. Boric, in particular, emphasised the need for a “horizontal” dialogue between civilizations, one that moves away from authoritarianism and imperialism. His comments reflect the sentiment in many parts of Latin America, where there is growing frustration with US dominance in the region and a desire for more equitable partnerships. A new chapter for Latin America-China ties The strengthening of economic ties between China and Latin America is poised to continue, especially as many LAC countries seek to diversify their trade partnerships and reduce their reliance on the US amid growing uncertainties in its policies and its protectionist stance. With the expansion of infrastructure projects and increasing Chinese investment in key industries, the relationship between China and Latin America is evolving rapidly. Xi’s speech also highlighted the role of China as a global leader in emerging sectors like clean energy and high-tech industries. As part of its broader diplomatic outreach, China has sought to position itself as a champion of multilateralism, offering an alternative to US protectionism and isolationism. In the face of rising US tariffs and mounting pressures, Latin America now finds itself at a crossroads. As China offers financial support, new trade opportunities, and a more multilateral approach, it seems clear that many countries in the region will continue to look eastward for new opportunities. (With inputs from agencies)

China strengthens ties with Latin America amid growing uncertainties

<p class="MsoNormal"><span lang="EN-GB">Starting December 1, China will implement a zero-tariff policy for goods imported from countries classified as the world's least developed, a strategic move designed to reduce shipping costs from parts of Africa and Asia while enhancing China's influence in global trade as detailed in a report by the South China Morning Post.</span></p>

<p class="MsoNormal"><span lang="EN-GB">This initiative is expected to create significant opportunities for both exporters in these developing countries and importers in China. Further, according to officials in China this is a first-of-its-kind move.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">The new scheme will apply to all UN-recognised least-developed nations<o:p></o:p></span></b></p>

<p class="MsoNormal"><span lang="EN-GB">The new tariff scheme will apply to all UN-recognised least-developed nations that maintain diplomatic relations with China. Of the 43 nations that this scheme will benefit, 33 are located in Africa, while others include Yemen, Kiribati, the Solomon Islands, Afghanistan, Bangladesh, Cambodia, Laos, Myanmar, Nepal, and East Timor.</span></p>

<p class="MsoNormal"><span lang="EN-GB">By eliminating tariffs across all import categories, these countries can export crops, fruits, seafood, and commodities to China with reduced costs, thus expanding their access to this vast market. This move will further consolidate the dominance of the Chinese economy in emerging markets.</span></p>

<p class="MsoNormal"><span lang="EN-GB">According to Analysts, this move poses minimal risk to China's manufacturing sector, which relies heavily on exports to more developed economies like the US and Europe. Instead, it positions China favourably in emerging markets as Western nations increasingly impose barriers to Chinese goods. Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute, noted that the timing of China's tariff elimination is particularly relevant amid rising global protectionism.</span></p>

<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><span lang="EN-GB">Fostering such relationships can be beneficial for China<o:p></o:p></span></b></p>

<p class="MsoNormal"><span lang="EN-GB">President Xi Jinping, announced the zero-tariff scheme during a September 5 keynote at the Beijing Summit of the Forum on China-Africa Cooperation the SCMP report detailed further.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Liang Yan, an economics professor at Willamette University, pointed out that fostering trade relations with less developed nations could yield diplomatic benefits for China the South China Morning Post report detailed further.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Strengthening ties with these countries may facilitate Beijing's influence in international organisations, as it champions open trade policies over protectionist measures. "China aims for greater solidarity with the Global South, which reflects its broader goals of power projection," she explained.</span></p>

<p class="MsoNormal"><span lang="EN-GB">In recent years, China has actively sought to solidify its trade relationships with developing nations. In 2022 alone, China eliminated tariffs on 98 per cent of taxable products from 16 least developed countries. This commitment is underlined by the fact that, according to the World Trade Organization, a quarter of merchandise exports from these countries went to China in 2021, making it their largest trading partner.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Last year, exports from the 43 UN-listed nations to China reached over $60 billion, highlighting the growing economic interdependence. This zero-tariff initiative, announced by President Xi Jinping during the Beijing Summit of the Forum on China-Africa Cooperation, marks China, as the first major developing nation to adopt such a sweeping policy.</span></p>

<p class="MsoNormal"><span lang="EN-GB">While there are tariff quotas in place, meaning only shipments within the quotas will be tariff-free, the overall elimination of tariffs is expected to significantly enhance trade volumes between China and these developing nations. By facilitating smoother trade flows, China not only benefits economically but also strategically reinforces its role as a leader in the Global South.</span></p>

<p class="MsoNormal"><span lang="EN-GB">Therefore, China's zero-tariff policy for the least developed countries represents a significant step in reshaping global trade dynamics. It opens new avenues for economic collaboration, positions China as a pivotal player in the developing world, and counters rising protectionist sentiments in the West.</span></p>


Starting December 1, China will implement a zero-tariff policy for goods imported from countries classified as the world's least developed, a strategic move designed to reduce shipping costs from parts of Africa and Asia while enhancing China's influence in global trade as detailed in a report by the South China Morning Post.

Starting December 1, China will implement a zero-tariff policy for goods imported from countries classified as the world's least developed, a strategic move designed to reduce shipping costs from parts of Africa and Asia while enhancing China's influence in global trade as detailed in a report by the South China Morning Post. This initiative is expected to create significant opportunities for both exporters in these developing countries and importers in China. Further, according to officials in China this is a first-of-its-kind move. The new scheme will apply to all UN-recognised least-developed nations The new tariff scheme will apply to all UN-recognised least-developed nations that maintain diplomatic relations with China. Of the 43 nations that this scheme will benefit, 33 are located in Africa, while others include Yemen, Kiribati, the Solomon Islands, Afghanistan, Bangladesh, Cambodia, Laos, Myanmar, Nepal, and East Timor. By eliminating tariffs across all import categories, these countries can export crops, fruits, seafood, and commodities to China with reduced costs, thus expanding their access to this vast market. This move will further consolidate the dominance of the Chinese economy in emerging markets. According to Analysts, this move poses minimal risk to China's manufacturing sector, which relies heavily on exports to more developed economies like the US and Europe. Instead, it positions China favourably in emerging markets as Western nations increasingly impose barriers to Chinese goods. Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute, noted that the timing of China's tariff elimination is particularly relevant amid rising global protectionism. Fostering such relationships can be beneficial for China President Xi Jinping, announced the zero-tariff scheme during a September 5 keynote at the Beijing Summit of the Forum on China-Africa Cooperation the SCMP report detailed further. Liang Yan, an economics professor at Willamette University, pointed out that fostering trade relations with less developed nations could yield diplomatic benefits for China the South China Morning Post report detailed further. Strengthening ties with these countries may facilitate Beijing's influence in international organisations, as it champions open trade policies over protectionist measures. "China aims for greater solidarity with the Global South, which reflects its broader goals of power projection," she explained. In recent years, China has actively sought to solidify its trade relationships with developing nations. In 2022 alone, China eliminated tariffs on 98 per cent of taxable products from 16 least developed countries. This commitment is underlined by the fact that, according to the World Trade Organization, a quarter of merchandise exports from these countries went to China in 2021, making it their largest trading partner. Last year, exports from the 43 UN-listed nations to China reached over $60 billion, highlighting the growing economic interdependence. This zero-tariff initiative, announced by President Xi Jinping during the Beijing Summit of the Forum on China-Africa Cooperation, marks China, as the first major developing nation to adopt such a sweeping policy. While there are tariff quotas in place, meaning only shipments within the quotas will be tariff-free, the overall elimination of tariffs is expected to significantly enhance trade volumes between China and these developing nations. By facilitating smoother trade flows, China not only benefits economically but also strategically reinforces its role as a leader in the Global South. Therefore, China's zero-tariff policy for the least developed countries represents a significant step in reshaping global trade dynamics. It opens new avenues for economic collaboration, positions China as a pivotal player in the developing world, and counters rising protectionist sentiments in the West.

China bolsters global trade ties with zero-tariff initiative for developing nations

<p>White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.</p>

<p>Trump administration economic adviser Larry Kudlow said trade deputies from the two countries would speak within 10 days and "if those deputies meetings pan out...we are planning to have China come to the USA" to advance negotiations over ending a trade battle that has emerged as a potential risk to global economic growth.</p>

<p>But even with the stalks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on "Fox News Sunday" the United States remained "in pretty good shape."</p>

<p>"There is no recession in sight," Kudlow said. "Consumers are working. Their wages are rising. They are spending and they are saving."</p>

<p>His comments follow a rocky week in which concerns about a possible US recession began to drive financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign. Democrats on Sunday argued Trump's trade policies are now posing an acute, short-term risk.</p>

<p>US stock markets tanked last week on recession fears with all three major US indexes closing down about 3% on Wednesday only to pair their losses by Friday due to expectations the European Central Bank might cut rates.</p>

<p>The Fed and 19 other central banks have already loosened monetary policy in what Fitch Ratings last week described as the largest shift since the 2009 recession.</p>

<p>Markets are expecting even more cuts to come. For a brief time last week bond investors demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth.</p>

<p>Much of the uncertainty surrounds prospects for a resolution of the trade tensions between the United States and China.</p>

<p>The administration last week delayed the imposition of some of its planned tariffs to avoid disrupting the upcoming Christmas shopping season. President Donald Trump told reporters he had a call with China’s President Xi Jinping scheduled soon. It had not taken place as of Saturday night.</p>

<p>Trade adviser Peter Navarro on Sunday dismissed last week's market volatility as any sort of warning sign, saying "good" economic dynamics were encouraging investors to move money to the United States.</p>

<p>"We have the strongest economy in the world and money is coming here for our stock market. It's also coming here to chase yield in our bond markets," Navarro told ABC's "This Week."</p>

<p>For bond markets, the sort of movement Navarro described is often driven by trouble - in this case the possibility that the trade battle with China is lasting far longer than expected and becoming disruptive to business investment and growth.</p>

<p>Still, Navarro said the tariffs on Chinese goods, "are not hurting anybody here."</p>

<p>The US economy does continue to grow and add jobs each month. Retail sales in July jumped a stronger-than-expected 0.7%, the government reported last week, and Kudlow said that number showed that the main prop of the US economy is intact.</p>

<p>But manufacturing growth has slowed and lagging business investment has become a drag. Globally, flagging trade flows have pushed the German economy toward recession, and dampened growth in China.</p>

<p>A slowdown would be bad news for Trump, who is building his 2020 bid for a second term around the economy's performance. He told voters at a rally last week they had "no choice" but to vote for him to preserve their jobs and investments.</p>

<p>Despite talking up the economy, the president and his advisers have repeatedly accused the Fed of undermining the administration's economic policies. On Sunday, Kudlow again pointed the finger at the central bank, describing rate hikes through 2017 and 2018 as "very severe monetary restraint."</p>

<p>The Fed hiked rates seven times over those two years as part of a plan to restore normal monetary policy following the emergency steps taken to battle the 2007-2009 global financial crisis and recession.</p>

<p>Even with those steps, the Fed's target interest rate has remained well below historic norms, and policymakers have started cutting rates in response to growing global risks.</p>

<p>Democratic presidential candidates on Sunday joined the many economic analysts who have said the administration's sometimes erratic policies on trade -- at one point threatening tariffs on Mexico over immigration issues -- are to blame for increased uncertainty, disappointing business investment and market volatility.</p>

<p>“I’m afraid that this president is driving the global economy and our economy into recession," Democratic candidate Beto O’Rourke said on NBC's "Meet the Press."</p>

<p>Speaking to CNN's "State of the Union" on Sunday, Democratic South Bend, Indiana Mayor Pete Buttigieg criticized the administration for failing to deliver a deal with China.</p>

<p>"There is clearly no strategy for dealing with the trade war in a way that will lead to results for American farmers, or American consumers," he said.</p>


White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.

White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States. Trump administration economic adviser Larry Kudlow said trade deputies from the two countries would speak within 10 days and "if those deputies meetings pan out...we are planning to have China come to the USA" to advance negotiations over ending a trade battle that has emerged as a potential risk to global economic growth. But even with the stalks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on "Fox News Sunday" the United States remained "in pretty good shape." "There is no recession in sight," Kudlow said. "Consumers are working. Their wages are rising. They are spending and they are saving." His comments follow a rocky week in which concerns about a possible US recession began to drive financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign. Democrats on Sunday argued Trump's trade policies are now posing an acute, short-term risk. US stock markets tanked last week on recession fears with all three major US indexes closing down about 3% on Wednesday only to pair their losses by Friday due to expectations the European Central Bank might cut rates. The Fed and 19 other central banks have already loosened monetary policy in what Fitch Ratings last week described as the largest shift since the 2009 recession. Markets are expecting even more cuts to come. For a brief time last week bond investors demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth. Much of the uncertainty surrounds prospects for a resolution of the trade tensions between the United States and China. The administration last week delayed the imposition of some of its planned tariffs to avoid disrupting the upcoming Christmas shopping season. President Donald Trump told reporters he had a call with China’s President Xi Jinping scheduled soon. It had not taken place as of Saturday night. Trade adviser Peter Navarro on Sunday dismissed last week's market volatility as any sort of warning sign, saying "good" economic dynamics were encouraging investors to move money to the United States. "We have the strongest economy in the world and money is coming here for our stock market. It's also coming here to chase yield in our bond markets," Navarro told ABC's "This Week." For bond markets, the sort of movement Navarro described is often driven by trouble - in this case the possibility that the trade battle with China is lasting far longer than expected and becoming disruptive to business investment and growth. Still, Navarro said the tariffs on Chinese goods, "are not hurting anybody here." The US economy does continue to grow and add jobs each month. Retail sales in July jumped a stronger-than-expected 0.7%, the government reported last week, and Kudlow said that number showed that the main prop of the US economy is intact. But manufacturing growth has slowed and lagging business investment has become a drag. Globally, flagging trade flows have pushed the German economy toward recession, and dampened growth in China. A slowdown would be bad news for Trump, who is building his 2020 bid for a second term around the economy's performance. He told voters at a rally last week they had "no choice" but to vote for him to preserve their jobs and investments. Despite talking up the economy, the president and his advisers have repeatedly accused the Fed of undermining the administration's economic policies. On Sunday, Kudlow again pointed the finger at the central bank, describing rate hikes through 2017 and 2018 as "very severe monetary restraint." The Fed hiked rates seven times over those two years as part of a plan to restore normal monetary policy following the emergency steps taken to battle the 2007-2009 global financial crisis and recession. Even with those steps, the Fed's target interest rate has remained well below historic norms, and policymakers have started cutting rates in response to growing global risks. Democratic presidential candidates on Sunday joined the many economic analysts who have said the administration's sometimes erratic policies on trade -- at one point threatening tariffs on Mexico over immigration issues -- are to blame for increased uncertainty, disappointing business investment and market volatility. “I’m afraid that this president is driving the global economy and our economy into recession," Democratic candidate Beto O’Rourke said on NBC's "Meet the Press." Speaking to CNN's "State of the Union" on Sunday, Democratic South Bend, Indiana Mayor Pete Buttigieg criticized the administration for failing to deliver a deal with China. "There is clearly no strategy for dealing with the trade war in a way that will lead to results for American farmers, or American consumers," he said.

White House says no recession in sight, pushes China trade talks

China has demonstrated more than enough sincerity to reach a mutually beneficial deal and end trade tensions with the United States. However, trapped in hegemonic ideology, the U.S. has responded by unilateral and protectionist tariff hikes that put world economy in danger, according to a commentary published by China's Xinhua News Agency on Sunday.

China's utmost sincerity in trade talks a sign of strength

By raising tariffs on Chinese products, the United States will harm the interests of its businesses and consumers in the long term, according to Chinese economic experts at a seminar on China-US trade in Beijing on Sunday.

US raising tariffs will harm American businesses, consumers: Chinese experts