Carl Icahn Cites China’s Value in Global Economy
Investment giant Carl Icahn expressed his thoughts on the trade war between the U.S. and China on Monday. The billionaire said, "I think that it's mandatory that we do a deal with China and work it out."
According to FOX Business, Icahn is hopeful that U.S. President Donald Trump will consider the importance of China in the global market. He went on to explain that the U.S. is actually benefitting from its counterpart's specialty of labor cost-cutting as this translates to the prevention of price peaks in the U.S. "I feel China is extremely important to our economy," he noted.
Icahn has an estimated net worth of $22.5 billion and he is among the most notable investors and businessmen in the world. He is also an activist and philanthropist. His company, Icahn Enterprises, formerly American Real Estate Partners, may become among the companies that will be heavily impacted by the ensuing trade war.
The trade battle has already affected stocks in the United States, raising concerns among investors who have the foresight of the negative impacts the war can bring upon the economy as a whole.
The two-day trade talks were scheduled following a meeting between Trump and China president Xi Jinping failed to materialize in December. Tariff increases were suspended and the truce will not end until March. A U.S. tariff increase of 25 percent will be laid out on $200bn Chinese goods if no amicable settlement is reached by the end of 90 days, The Guardian reports.
While analysts are doubtful of an ultimate result after the trade talks, it is expected that both the U.S. and China will be more cooperative moving forward. The United States is faced with a plunging stock market while China is having trouble with exportation. Experts believe that these economic setbacks will bring the two countries together in hopes for a resolution that will benefit the global market.
Meanwhile, Chinese Vice-Premier Liu He is expected to drop by the White House sometime this month, should there be significant progress on the trade talks. In a move that shocked spectators, the Chinese leader reportedly attended the first day of negotiations despite the absence of some anticipated U.S. delegation members.
Leaked photos show the Chinese VP joined by a much bigger delegation compared to the six cabinet members provided by the U.S. Liu is Jinping's right-hand man in economic aspects and analysts believe his appearance is proof of China's desire to reach a unanimous end to the trade war.