The trade war with China has begun. How long will it go on, and how bad will it become? More importantly, how will affect the U.S. and global economies. This article citesa lot of people and presents different theories and scenarios. One thing is clear is that something has hurt China’s financial markets in the last few months.
For now, China has avoided upping the ante. “Our view is that trade war is never a solution,” Premier Li Keqiang told reporters during a visit to Bulgaria on Friday, after the first round of tit-for-tat duties. “It benefits no one.”
“The reaction from Beijing has been restrained,” said Gene Ma, chief China economist at the Institute of International Finance. “Internally, they have a policy to contain this issue. They’ve decided this should be dealt with as a trade issue, not a geopolitical issue.”
That could change, especially if Trump continues to accuse China of trading unfairly and stealing American intellectual property. U.S.-China relations have arguably slumped to their lowest point in years, despite praise by Trump for President Xi Jinping and a prediction that the pair would “make great progress together!”