The effects of US tariffs on Chinese goods are felt on the Chinese stock market : $514 bn wiped out only in the last week and almost 20% in 2018. Ok, it’s a little drop from the 6.7tn Chinese equity market, but it’s definitely going into bear territory, even more so during this period of monetary tightening…… Continue reading World Trade War : Chinese Stock Market
The US had a strong rationale for imposing the steel safeguard. This piece from Der Spiegel couldn’t be any clearer. The OECD estimates there is a global overcapacity in steel production of 740 million tons. Predatory competition and price wars are so brutal that even global companies like ThyssenKrupp are no longer able to survive on their…… Continue reading World Trade War of Steel
The World Cup of business and advertising I mean, because otherwise there’s no Chinese football team in the FIFA competition in Russia. But are they there following a business logic ? Because who really knows wanda, hisense, vivo ? There is a strong sense that Chinese firms’ advertising in Russia is more about geopolitics and friendship with…… Continue reading China Wins (at) the World Cup
So in the end, the US tariffs announced for June 15 on $50bn Chinese imports were postponed for July 6 and include mostly goods containing “industrially significant technologies”. China did not lost time and replied within hours with a tit-for-tat own list targeting especially agricultural US products. As if all this was not enough, on Monday, June…… Continue reading World Trade War : US and China trading threats
The last known number of Chinese US Treasuries was $ 1.19 tn. It was speculated that they could be used as a “nuclear option” in the current US China trade war. Wrongly, it appears, because no matter what, the US Treasuries are the most liquid and secure place to invest the huge pile of Chinese dollars.…… Continue reading Chinese Economic Engineering : foreign currency
The Chinese government is slowly cutting down borrowing in order to reduce corporate debt, which in turn could decrease Chinese economy’s growth to 4.5% from the now 6.5%. To note that business investment makes a quarter of GDP, while corporate debt is estimated by independent analysts to some 160% of GDP. As social and economic…… Continue reading Chinese Economic Engineering : corporate debt
Today, according to the previous schedule, the US should slap supra-taxes on Chinese imports worth $50bn. It remains to be seen if things are going according to the schedule, or new negotiations are in view. This should also be an opportunity to see more clearly through the intricacies of US trade policy, rather dazzling until…… Continue reading World Trade War : US duties on Chinese imports ?