Reuters: Trump's $500 billion trade threat makes China's already battered investors shiver
SHANGHAI/SINGAPORE (Reuters) - Six months of wrangling over trade tariffs with the United States has wiped out about a fifth of China’s stock market value and driven its currency down sharply. But those moves may have just been a downpayment on what is yet to come.
Shanghai's benchmark share index .SSEC is down roughly 22 percent since January, when U.S. President Donald Trump's first trade tariffs on solar panels were announced. It has fallen 9 percent since June 19, when Trump outlined his plans to tax a lot more Chinese imports than he initially proposed.
Tariffs on the first batch of $34 billion worth of Chinese imports kicked in on Friday. Beijing said it had no choice but to respond in kind by taxing a similar amount of U.S. goods coming into China. U.S. tariffs on another $16 billion of Chinese goods are due to go into effect in two weeks, Trump said on Thursday.
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WNU Editor: The Chinese stock market has gone down by 20%, and its currency down by 7% since Arpil. And this is just the start. But the biggest impact will be on U.S. investments and joint ventures in China. No U.S. company in his right mind is going to invest a penny in China right now, and if this trade war continues, U.S. companies will divest massively from China. This loss of U.S. expertise, markets, and investment is going to hurt China significantly, and it will imperil the current precarious financial/debt state of many of its key industries .... industries that are entirely dependent on U.S.. markets. I cannot explain in words the impact that this will have on China, and on U.S. companies that have invested massively in China. As I have said repeaedly in the past, I do not know what advice Presdient Xi is receiving, but he should have kept his promises to President Trump last year at Mar-a-Lago when he made his commitment to stabilize the current trade deficit by purchasing more U.S. goods and by lessening his own tariffs and border regulations on U.S. goods. He forgot his promises .... but President Trump has not, hence we are in a trade war that shows no signs of ending.
7 comments:
Hahaha told you
So glad I pulled my money out of China
This is only getting worse because to try save face they'll hit back and then Trump will plaster them with 300bn lololol
#ByeChina #NotLookingGoodForTheDragon
Love it. That mean 'ol Trump has done gone and put lead in Mr. Xi's kicking can. Now to our border with Mexico and decades of Washington's can kicking. I can't wait to hear Crumbs Pelosi's shrill response.
I think some are learning apple carts with mismade wheels are not acceptable. They are hard as heck to pull and tip over easily when the horse rebels.
The prior white house resident is oddly silent on the Trump man. #1, so far he's been humiliated on the subject of how to run an economy. But but I'm a constitutional scholar. #2, his strategy is to hunker down and hope. Hope is not a solution in my book.
There will be adjustments in the world's economies and it will take time for the waves to settle down but China's self serving game is under pressure and will have to adjust.
Remember the 80's when Japan was buying up every golf course in this country they could get their hand's on? Their economic practices were the must do method. Then.
I love the fake narrative that the US is starting a trade war.
The trade war has already been happening since the end of WWII. The US is simply tired of getting hit in the guts without responding.
There's not much to add to any of the comments above or the editor's comment. All Xi, China, and a number others had to do was adopt reasonable positions on all of this. To the best I can tell, at no point in this process has POTUS or his team requested anything that would be unreasonable.
I've been told all of these years by a number of people on just how brilliant the Chinese are. At this point, it appears that such talk may have been in error. It appeared to me that they were well positioned to dominate the 21st century. By taking unreasonable positions with regards to trade with America they risk undermining all of this.
Only cnn and msnbc claim trump started this..makes you wonder who's influencing these media outlets and who's benefiting
A new thought; the Chinese have been buying property for decades in SoCal. I lived in a neighborhood that had become nearly all Asian in Hacienda Heights, CA. Nice quiet neighbors, seldom seen outside. I think they were making a judgment on their own country by doing so.
With China's new wealth of the last decade or so going to US real estate, is it time to look into your county's tax rolls for up and coming mortgage defaults? Not many if any Japanese owned golf courses anymore in SoCal.
Roger Hairy Foreign Devil Who Eats Small Babies Smith
The next thing Trump should do is stop this madness visa program the US has with China. They can come and stay for ten years wtf.. easily 1% of them are spies. In Silicon valley I wouldn't be surprised if it nearly hits 5%. And I don't mean operatives out to eliminate people haha I mean industrial spies copying and selling everything they can get their fingers on. .from code libraries they send home to their friend's companies to infiltrating data centers and communication networks to sensitive research like AI. Once Trump starts coming down on those traitors and kicks them out, china will lose its competitive edge and fast
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