China Will Do What’s Best for China: Not Shooting Markets (Bloomberg)
Many of the proposals or suggestions on how China might respond to U.S. tariffs have the air of “Surrender or I will shoot myself in the foot.” They may not only hurt China, but damage the country’s campaign to establish itself as a financial power and hinder the use of the yuan as a reserve currency.
It’s possible China will use talk of such steps to make the Trump administration more flexible, but very unlikely Beijing can follow through.
The proposals that have been put forward include:
- Depreciate the yuan.
- Sell U.S. Treasuries.
- Sell U.S. equities.
- Place tariffs on U.S. oil exports along with soybeans.
- Hinder exports of U.S. services.
- Offset U.S. tariffs with subsidies to Chinese exporters.
- China Loses #2 Creditor Rank to Germany (Bloomberg)
- The World in 2050 (PWC)
- China’s Effective Tax Rate is Still Much Lower Than the US (The Asset)
- South Korea Learns Not to Annoy China as Their Tourist Numbers Fall (CNN Money)
- China Mobile has the Largest Share of Chinese Internet Data Traffic But China Unicom Has the Fastest Growth (Umeng)
- How China’s Middle Classes Move Their Money Abroad (SCMP)
- China’s New Rich Distrusts Financial Advisers (The Asset)
- Why China Will Lose a Trade War With Trump (The Daily Beast)
- M&G Investments’ Vaight: “Chinese Firms Can Become Globally Competitive” (FE Trustnet)
- China and India to Overtake U.S. Economy This Century (Bloomberg)