US-China Trade War Affecting Construction Of Vegas Casinos
Superpowers always find a new way to wage war but not using weapons of mass destruction. The US waged a technological war against the Soviets in the 20th century, and it eventually emerged as a winner as the Soviet Union ceased to exist.
However, at the start of the 21st century, a new power started emerging — China. The country became so strong economically that some US officials started feeling that the world leader tides might shift soon. President Trump, as the embodiment of one such school of thought, started conducting an experiment of a sort, in order to improve the US economy.
One of the most important things he did during his time as president was to impose high taxes on Chinese goods. Whether this was a smart move or not, it’s not up to us to judge. One thing is certain, though — the Chinese government responded with similar measures, meaning that both countries are in a bit of a pickle.
This represents an issue for various industries that relied on the two countries to cooperate, and one of the industries that feels very exposed at the moment is the casino industry. One of the things that is often traded between the two countries is steel, and its price is rapidly increasing. Now, steel happens to be very important in the construction industry, which has been pretty present in Las Vegas lately. The question is — is Vegas ready to pay the price?
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China has been the largest steel exporter for some time now, and all big projects that use Chinese steel are revolving around the price of this metal. With the price increase, some development projects in Vegas would come to a halt, as the price will overburden their budgets.
An Applied Analysis analyst Jeremy Aguero stated for the Las Vegas Review-Journal that there were some projects in Vegas that are re-evaluating their actions and hesitating to make a move from planning to constructing due to uncertainty of prices of metals on the market, especially the ones that are coming from China.
The Las Vegas Convention and Visitors Authority disclosed data about Vegas which shows that there is approximately $15.2 billion planned for huge projects that are either labeled as “being planned” or “under construction.” All of those projects are planned for the period between now and 2022.
Some of the projects that are currently underway in Vegas are Resorts World Las Vegas and The Drew. Moreover, there is a huge transformation underway as Hard Rock is being transformed to Virgin.
Vegas will be Vegas, meaning that there will always be various renovations and new resorts opening their doors. However, in order to maintain its pace, it needs to use various construction materials that play a vital role. With steel prices going up and the US-China trade war raging on, it will definitely be a difficult time for the city, threatening to affect the overall budget of casino operators, as well as the construction companies.
Many professionals agree that the trade war has brought more harm than good to both nations. Neither Trump nor the Chinese administration is willing to put their guard down, and it seems that the whole charade will last until one of the leaders is changed. Given the circumstances in China, Trump is more likely to end his presidency, which would hopefully stop the trade war.
The problem is that nobody knows what the next president would do in order to make trade relations with China normal again. Perhaps, they may continue waging war. That definitely wouldn’t be good for the gaming industry.