American billionaire and hedge fund manager Bill Ackman has expressed the urgent need for Beijing to quickly reach a trade agreement with the United States. He believes that the prolonged trade war will severely damage the Chinese economy and that time is of the essence in avoiding further harm.
Ackman took to social media on Saturday to comment on the U.S.-China tariff battle. He emphasized that Beijing should be highly motivated to reach a trade agreement with the U.S. as soon as possible. Ackman stated that the longer high tariffs persist, the more likely foreign companies will lose confidence in China, leading them to shift their supply chains to countries such as India, Vietnam, Mexico, the U.S., or elsewhere.
He warned that if the U.S. and China cannot reach an agreement promptly, companies with supply chains in China will inevitably relocate to other countries, which could have grave consequences for China’s economy in the long term. Ackman emphasized that time is a friend to the United States in these negotiations but an enemy to China.
Ackman’s assessment differs from the direction of mainstream Western media. While some media believe that China is enduring more pain in the trade war and is prepared for a protracted battle, Ackman argued that the continuous presence of tariffs in the trade war itself poses a significant threat to China’s economy in the long run.
The hedge fund manager pointed out that the longer tariffs persist, the more quickly companies with supply chains in China will relocate their operations to other countries. He stressed that the anticipation of a prolonged trade war would intensify the motivation for such relocations.
He further added that even in the short term, the tariffs imposed by the U.S. on Chinese goods would cause significant damage to companies reliant on Chinese products or components for manufacturing, particularly smaller companies lacking the necessary funds to weather the storm.
Ackman concluded by stating that unless China and the U.S. reach a new, highly favorable agreement, companies are almost certain to withdraw from China, eroding confidence in relying on China to secure the majority of their supply chains.
Since taking office, President Trump has imposed tariffs as high as 145% on most Chinese goods, prompting retaliatory measures from Beijing. The economic costs of the trade war have put pressure on certain industries, leading Beijing to consider suspending tariffs of 125% on some U.S. imported products.
Ackman, a long-time Democratic donor who has recently shown support for Trump, has backed the President’s policies on various issues, from foreign policy to combating anti-Semitism.
In another development, South Korea’s major newspaper, “Chosun Ilbo,” unexpectedly captured images of a Chinese delegation entering the U.S. Department of Treasury, confirming what President Trump referred to as “backchannel contacts.” Chinese officials requested the deletion of the photos, but the behind-the-scenes interactions were confirmed.
Despite claims made by a spokesperson for the Chinese Foreign Ministry stating that there have been no negotiations or discussions with the U.S., the report was dismissed as “fake news.”