Anyone want to know why Donald Trump is beating on China with tariff’s?
Look no farther then this….
Trump is looking for China to blink…..
Chinese policy makers face a tough balancing act as they try to maintain financial stability amid slowing economic growth, a trade war with America and rising U.S. interest rates. Beijing has so far refrained from major market rescue efforts of the sort that followed the nation’s 2015 equity crash, but some investors are calling for bolder action. With $603 billion of shares pledged as collateral for loans, or 11 percent of China’s market capitalization, one concern is that forced sellers will tip the market into a downward spiral.
Investor attention may now shift to the release of official data on Friday. The reports will offer details on the state of China’s economy through the end of September, when the U.S. escalated the ongoing trade war. Gross domestic product probably expanded 6.6 percent from a year earlier in the third quarter, according to a Bloomberg survey of economists.
“The markets are getting more volatile each day and will probably stay so over the next two months,” said Banny Lam, head of research at CEB International Investment Corp. “Investors are pricing in the scenario that China’s economy will be impacted by the trade war in the next six months, as they believe the effects will start to show from the fourth quarter.”….
A look at the political side of this for China internally….