When two giant creatures fight, animals in the way get trampled or hurt seriously. United States of America and China are the two biggest economies of the world. They are currently locked in a battle of supremacy in this trade tariff tit-for-tat. Will China give in to US’ aggressive stance on trade between two countries?
Mexico, Canada and South Korea had re-written their trade agreements with the US. Is China going to be docile and let US dictates their terms on trade?
Politically, China is not going to be seen as subservient to the US for the rest of the world to see. It is only in five years that the world has seen more of China on the world stage. China in my opinion is not going to step back and let US tells her what to do. In the face of this trade dispute, China could not be seen as the loser, especially to 1.3 billion China population.
At this time, we can only see some clarity of China relationship with US after November 6, US House of Representatives election. From now until November 6, I expect volatility of the financial markets.
Copyright © 2018, limkimtong for Living Investment
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