Tariffs have absolutely nothing to do with china collapsing... It affects Foreign Inflow, but at this stage of capital control, and just overall extremely negative sentiment towards the chinese commies and their view on business, tariffs or not Foreign money is leaving china as long as communist party in charge... The " Trade War " is the new subprime, blame it on the hot topic of the day when it all crumbles, instead of Central Banks fucked the world hard with ZIRP and NIRP. Almost 12 Trillion negative yielding assets that might be used as collateral, Money Markets seem to have changed in attitudes recently, and problem is less collateral to splash around cause so many CB's own safe collateral ( Government Debt ). So how does the world have 50 % more in debt then peak debt crisis of 2008, yet we have way less collateral ? Bad bad things coming... It's clear as day to anyone paying attention, big trouble in lil china comes from the fact they deeply borrow in Eurodollar markets and post their shit bonds as collateral, when Baoshang bank fucked up, PBOC said it would cover only 70 % of losses on bond, while the thought was pboc will pay back 100 % of any loses on chinese bonds... Now you have dozens of Trillions in Yuan Bonds already used as collateral from loans, that might be worth fuck all cause PBOC ain't bailing out much more... You dig ?
Those who say china's banking problem won't affect anywhere else is non sense... Over 50 % of lending in non-US banks was offshore to offshore, and china is the biggest consumer of loans in Eurodollar markets... Now their collateral is bunk, credit markets will shit the bed soon.
https://www.fxstreet.com/analysis/the-geography-of-dollar-funding-of-non-us-banks-201901071552
