Europe will face more economic 'pain' if US limits investment in China, analysts say

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Several news outlets recently reported the White House was looking into limiting investment ties between the world's two largest economies.

that the White House was looking into limiting investment ties between the world's two largest economies.

"That means lower demand from China, and from the rest of the world too — and more pain for Europe's heavily export-dependent economy."Clete Willems, a former high-ranking White House trade official who served as a deputy director of the National Economic Council,However, he warned such a move could backfire if not done properly.

"Should international banks fail to sever these ties, they in turn could face fines reaching billions of U.S. dollars," Demarais said. Washington and Beijing have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

 

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US manufacturers, farmers, and consumers will face more economic pain as well. Now that China/Xi Jinping knows how vulnerable and desperate Trump is they have the upper hand. 'Trade wars are good and easy to win.' ~ Donald Trump 😩😨

Trump is crazy. It’s not good for his re-election.

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