Chinese Retaliation

[dealmaker]

Chinese Retaliation

China is hitting an extra $60 billion worth of U.S. imports with tariffs, in retaliation for the White House's new tariffs on $200 billion worth of Chinese imports. China threatened that figure before, so no surprise there. But, with the U.S. still threatening further tariffs, what does China have left with which to retaliate? Not currency manipulation, Premier Li Keqiang insisted today. "A one-way depreciation will do more harm than good for China," he said at a World Economic Forum event, denying that China has previously manipulated the yuan exchange rate to deal with trade tensions. South China Morning Post

 

[Cuddles]

Chinese Retaliation

China is hitting an extra $60 billion worth of U.S. imports with tariffs, in retaliation for the White House's new tariffs on $200 billion worth of Chinese imports. China threatened that figure before, so no surprise there. But, with the U.S. still threatening further tariffs, what does China have left with which to retaliate? Not currency manipulation, Premier Li Keqiang insisted today. "A one-way depreciation will do more harm than good for China," he said at a World Economic Forum event, denying that China has previously manipulated the yuan exchange rate to deal with trade tensions. South China Morning Post

They can always double or triple already tariffed products.

 

[Slartibartfast]

I hope for the US' sake a grown up like Steve M etc. has firm hands on the wheel. I was explaining to an ex-pat from Florida here how the stock buybacks were the fuel behind the rise of the indices he was watching thinking Trump was a genius. Also how directors and CEOs are bonus incentivized to ramp stock price at the expense of business development.

"But if he does that what will happen once the corporations have gorged themselves?".

A good question. How long does China have to wait for weakness?

 

[Slartibartfast]

On the other hand, maybe China is not so healthy at the top