On the afternoon of November 7, Beijing time, the results of the US mid-term elections have been released. The Republican Party of US President Trump continues to control the Senate, and the Democratic Party regained control of the House of Representatives after eight years.
According to the U.S. Constitution, U.S. presidential elections are held every four years, and congressional elections are held every two years. One of the congressional elections is held at the same time as the four-yearly presidential election, while the other is held between the presidential terms and is called the “midterm election.”
Due to the Sino-US trade war, the current US mid-term elections have received widespread attention in China. From the perspective of the general public, this US mid-term election is actually more related to the trend of the Sino-US trade war. From our polyurethane perspective, the trend of the trade war is related to polyurethane raw materials, downstream products (including furniture, automobiles, home appliances, etc.) etc.), especially since the current downward pressure on China’s economy is relatively high and domestic demand is sluggish, we will place more hope on the easing of the external economic environment.
In fact, even if Trump loses the House of Representatives, the two parties and the two houses of the United States have no differences in their China policies. The tough trade policy toward China will likely continue, and the trade war will continue, because China The essential reason for the friction between the United States is not only the issue of trade surplus and deficit, but the battle of national destiny, which is related to the dominance of international trade and the right to speak in military, cultural and technological aspects related to trade dominance.
Therefore, for us who are in the upstream and downstream industrial chain of polyurethane, the trade war will always be there. It is difficult to do business this year, and it may be even more difficult in the next few years. The structure of the industrial chain may usher in a major adjustment. I hope that we can all make strategic adjustments to cope with possible challenges in the future.
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