1
THE PEOPLE’S BANK OF CHINA LOWERED THE
REQUIRED RESERVE RATIO TO BOOST
CHINA APPLIES LOWER
IMPORT
.
TAX
China will lower import duties on products such as
frozen pork, avocado and infant formula. Import
duties for frozen meat decreased from 12% to 8%.
Meanwhile, avocado decreased from 25% to 7% and
formula milk decreased from 15% to 5%.
Temporary import tariffs on advanced technology
equipment and products will also be reduced. In order
to reduce medical costs and promote the production of
new drugs, China has begun to lift import duties on
pharmaceuticals containing alcal-id used to treat
asthma as well as raw materials. materials to produ
new diabetes medicine
1/1/2020
1/1/2020
The People's Bank of China (PBOC)
means the central bank announced on
January 1 that it will lower the required
reserve ratio (RRR) of banks, "freeing"
about US $ 114 billion to lend and
promote. The economy is slowing down.
The PBoC will lower the RRR by 50 basis
points on January 6, thereby reducing the
amount of cash the bank has to reserve.
Lowering the RRR will increase the money
supply for banks to lend to small businesses.
The PBoC has dropped RRR three times in
2019 to boost China's economy, when
growth last year was at its lowest level in
three decades
According to Xinhua news agency, the latest
lowering will help meet the cash needs
before the Lunar New Year in late January.
Weaker domestic demand and the trade war
with the US "contributed" to the slowdown
of the Chinese economy.
The United States and China announced last
month that they had reached a first-stage
trade deal, easing trade tensions for nearly
two years, when U.S. President Donald
Trump reduced or abolished some tariffs on
goods from China. China, while China is
committed to trade reforms and to increase
purchases of US agricultural products.
On December 31, Mr. Trump said the first
phase agreement with China would be signed
by the middle of this month and he would go
to China to continue negotiations
5/
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TESLA SHARES ROSE NON-STOP, Tesla's market value has reached $86.5 billion, roughly
BECAME THE LARGEST CAR equal to the market capitalization of GM and Ford
combined. Shares of this company continued to prosper,
MANUFACTURER IN AMERICAN
increasing by 2.5% on January 14, to close at $538/per
HISTORY share, bringing the company's capitalization to $97
billion, higher. Both Ford and General Motors
capitalization combined. If Tesla shares reach $ 554.80,
Tesla's valuation will reach $ 100 billion. And Tesla
decided to attack the headquarters of traditional cars:
Build a super factory in Germany, plan to ship the first
cars within the next year.

12/1

According to the Ministry off Industry and Trade, market in the last months of 2019 and the Lunar
on the Lunar New Year, the purchasing in the New Year of the Rat year (Canh Ty).In addition,
market is expected to increase significantly by 10 - the Ministry of Industry and Trade focuses on
COMMODITY
12% MARKET
over the same period last yearNEAR TET:15
and increase directing localities, businesses and related units to
- 20% compared to normal month of the develop plans to serve Tet, take initiative in
NO SHORTAGE OF GOODS, NO
year.Therefore, to ensure the supply of goods for reviewing goods supply and demand, preparing
SUDDEN
Tet, especiallyINCREASE IN PRICES
essential commodities, to stabilize good sources of goods, implementing the program,
Commodity
the market
market, the in Lunar
Ministry New Year
of Industry andwill not has
Trade stabilizing the market, especially focusing on
have theDirective
issued shortage ofNo.
goods12 and
/ prices
CT-BCTincreased
on the ensuring a stable supply of pork at a stable price;
suddenly. Goodsofhave
implementation been prepared
security measures,with sufficient
ensure the implementing the program of connecting supply
suppliesbetween
balance for people all over
supply andthe countrystabilize
demand, to shop. the
 3

and demand, bringing Vietnamese goods to rural

areas, mountainous areas and islands. 19/1

US SIGNS “PHASE ONE” TRADE DEAL WITH CHINA IN PUSH TO THE

PROFIT MARGINS OF THE BUSINESS AND THE WORLD ECONOMY
.
After nearly two years of intense negotiations, US President
Donald Trump and Chinese Vice Premier Liu He recently signed
“phase one” trade deal between the US and China at the White
House on January 15 that Trump said was to "righting the wrongs
of the past and delivering a future of economic justice and
security for American workers, farmers and families”.

The document is described as a "truce" that helps curb an

economic struggle that damages both countries and decreases the
risks facing the global economy. Through the trade deal, the US
government aims to address some of America's long-term
concerns about Chinese trade abuse. The details of the deal were
published by the White House in 86 pages, including 8 chapters
ranging from strict intellectual property in China to Beijing's
commitment to buy at least $200 billion in goods, and services for
the next two years, as well as China's pledge not to manipulate
currency. Following the deal, this year China pledged to buy at
least $32.9 billion USD of goods producing, agricultural products
($12.5 billion), energy ($18.5 billion), and 12.8 billion USD of
services. In 2021, the country continues to increase purchases of
manufactured goods to 44.8 billion USD, agricultural products at
19.5 billion USD, energy at 33.9 billion USD and services at 25.1
billion USD. However, the White House vowed to leave tariffs on
other $ 250 billion Chinese products. Trump said taxes on two-
thirds of imports would remain the same. "I will remove the tax
when I agree to the second phase agreement," he asserted that the
US needed these tax policies. Trump said the US and China will
continue to negotiate the “phase two” deal after the first phase
comes into effect. According to CNBC, this is a big step in the
trade war that damages American farmers and creates an obstacle
for global economic growth. The prolonged US-China trade war
has worried investors, many are also concerned it continues to
16/1
drive economic growth around the world
4