Don’t Believe The Hype: Market Overreacting On China Trade Talks

  • 📰 Forbes
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 53%

Business News News

Business Business Latest News,Business Business Headlines

The market is overreacting on China trade talks

Share to linkedinJustin Chen/© 2016 Bloomberg Finance LP

The best way to view the trade war is that the U.S.—and by default—China, are in this fight for the long haul. In the simplest of terms, the U.S. wants the Chinese government to stop subsidizing certain industries. Most U.S. companies surveyed by the U.S. China Business Council are either certain or reasonably suspicious that both state and private competitors in China are given a leg up through government freebies. Washington wants that to end in order to level the playing field. China does not want that to end and says that in order to move forward tariffs have to be removed. Two nonstarters.

“It’s a grand strategy predicated on the hope that if they can just hold things together for a while longer, perhaps they’ll wake up one day and all of these problems will have magically resolved themselves,” he says. “Hope is not a strategy. But it’s all they’ve got.”Earlier this year, an article in Bloomberg cited a J.P. Morgan money manager saying that his clients believed the trade war would end. There would be no more tariff escalation.

Granted, that survey was taken before the September and December tariffs were even announced. Views can change in the months ahead.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Yep

Sure...Make Whatever Money You Can Make From The Stock Market. Keep in Mind However, To Be Truly Realistic...This American / Chinese Cold War is So Incredibly Troubled, That It Requires A Miracle...Otherwise Most People Agree, It Will Certainly End With Never-Seen-Before Loss.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Market bull bets a trade war deal is coming sooner than Wall Street thinksOppenheimer's John Stoltzfus believes trade frictions between the U.S. and China will get resolved and pave the way to a significant market rally. FuturesNow Trump almost always gets hes way. China gonna bend. USA is gonna win . FuturesNow The final agreement will be on the afternoon of 9/12, right before the democratic debate. Watch and see. FuturesNow Why strike a deal now when you can strike one closer to election time? Like it or not, Trump really does hold all the cards 🤷🏽‍♂️
Source: CNBC - 🏆 12. / 72 Read more »