Trump is winning the trade war because China has more to lose

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1989TransAm
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Trump is winning the trade war because China has more to lose

Post by 1989TransAm » Wed Jul 18, 2018 12:56 pm

"Don’t look now, but there are numerous signs that President Trump
is winning the trade war with China. While the battle over tariffs and protecting intellectual property may eventually damage the United States’ economy, there are signs that China is already paying a price for its refusal to bend to Trump’s demands.

One indicator of that price is the sharp plunge in China’s stock exchanges. Since the White House announced the first tariffs — on washing machines and solar cells on Jan. 22 — the Shanghai Index of Chinese stocks is down nearly 20 percent, while the S&P 500 is off less than 1 percent.

That decline of share values is occurring in spite of the first-time inclusion in the MSCI, an important international index, of many Chinese stocks on June 1. That initial index listing attracted billions of dollars toward Chinese stocks, in expectation it would boost prices, but it did not.
What does that tell you? Investors think China has more to lose than the U.S. They are correct.

China’s government, determined to save face and match Trump’s tariff threats, is so concerned about the slide in share prices and what it might signal about the cost of the confrontation, that it will likely allow the $941 billion China Investment Corp. (CIC) to begin buying domestic stocks.

The sovereign wealth fund has petitioned to change its mandate, which formerly directed it to purchases of overseas shares; since most view the CIC as an arm of the Chinese government, the move may be interpreted as Beijing again intervening to prop up share prices.

It would not be the first time. From the middle of 2014 through the second quarter of 2015, Beijing encouraged China’s citizens to buy stocks, ballyhooing a booming economy and hinting that the government...."

http://thehill.com/opinion/finance/3974 ... re-to-lose

mk e
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Re: Trump is winning the trade war because China has more to lose

Post by mk e » Wed Jul 18, 2018 1:20 pm

There is no way to win....because you simply can't tax or spend your way to wealth.
Mark
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Re: Trump is winning the trade war because China has more to lose

Post by j-c-c » Wed Jul 18, 2018 1:32 pm

Victory thru attrition, what a concept, guess which end of the financial spectrum suffers the most?
Go Treasonous Trump!
Please Go.

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