atans1

Why Trump thinks he’ll win trade war with China

In China on 24/06/2018 at 4:39 am

On June 19th Mr Trump said he would slap a 10% tariff on an additional $200bn worth of Chinese goods. The new policy, which followed an announcement by the White House on June 15th that it would push forward with the original tariffs announced in March, sent markets plummeting. Stock exchanges fell around the world, from Tokyo to London to New York. Unsurprisingly, the losses were most acute in China, where the Hang Seng share index closed down 3% and exchanges in Shanghai and Shenzhen fell by 4% and 5%.

https://www.economist.com/graphic-detail/2018/06/20/americas-trade-spats-are-rattling-markets

Falls in US were peanuts compared to Chinese, HK because as Reuters Breakingnewsputs it

Any [Chinese] reprisals probably would have a limited effect on the Dow Jones Industrial Average and other stock indexes. Though Apple generates about a fifth of its top line in China, listed U.S. companies overall find only about 4 percent of their revenue in the People’s Republic, according to Morgan Stanley research. And it’s far-fetched to think China will stop buying Boeing aircraft or Intel chips.

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