Bill Ackman says “Time is the United States friend and China’s enemy” in the trade war

Billion -downtown coverage manager Bill Ackman said China will have to quickly hit a trade agreement with the United States, as it cannot gain a trade war that will make serious damage to its economy.

In a post XAckman said that Beijing “should encourage a lot to make a commercial agreement as quickly as possible”, as the highest rates persist, greater is the probability that companies will lose faith in China as a market in which they can originate or produce goods in economically viable terms. If an agreement did not soon occur, “all companies that have a China -based supply chain are transferred to India, Vietnam, Mexico, the United States or some other country,” he said.

“If China, on the other hand, decides to stubbornly maintain and not negotiate for pride or other emotional problems, China will suffer much more severe and permanent economic consequences,” said Ackman. “Time is the friend of the United States and China’s enemy in this negotiation.”

The evaluation of the coverage fund flying flight to those who say China will be able to do itwithstandThe trade war of President Donald Trump and the general tone ofdefiancethat has itmarkedBeijing position. President Xi Jinping hasreductionTrump’s efforts to put him on the phone and China said that the United States must show –respectAnd restart unpleasant observations before conversations between the two countries can begin.

Trump has arrived in China with 145% tariffs over most assets since taking office, which led to Beijing resumed and threatened most of the trade among the largest economies in the world. Still, Bloomberg newsinformedOn Friday, the Chinese government is considering suspending its 125% rate in some imports from the United States, as the economic costs of the trade war weigh in certain industries.

Given the economic damage of rates, both China and the United States have good reasons to demolish “up to a more wise level” from 10% to 20% as quickly as possible, said Ackman. The only thing that stops the reduction of the rates “is the fear of the part of the leadership of the two countries to look weak,” he said.

“Both countries know that 145% rates have to go down now,” said Ackman. “They are only trying to manage diplomacy in such a way to make it clear that it is a mutual decision as opposed to a” first “country.”

Ackman, for a long time in Democrats, has become a Trump supporter in recent years, supporting him from foreign policy to the fight against anti-Semitism.

This story originally presented to Fortune.com

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