Duh, the US has been willing to drop the tariffs from the get go for a level playing field. It doesn’t take a genius to weight the European light truck presence (doesn’t exist) against the US broader auto presence or the trade surplus between the two in the auto sector (EU/Germany has huge surplus). Autos are Europe’s largest trade surplus. Love seeing the libs try hard with the fake news and weak analysis. “Yeah, no” there’s a thing called a weighted average, you should look into it. LMAO
It’s great how BS initially wrote his post and it just said LMAO as the irritating bit, but then he decided that wasn’t enough and edited it to say “Duh…” and “there’s a thing called a weighted average, you should look into it.” It’s like, he went back and said: "Yah know, I have the tone of an a ss hole through most of this, but in the first and last sentence I’m just not enough of a d i ck. *edit*
I guess the “Yeah, no” really got him. People love to try to piss other people off, I guess. These are the things you see when you are posting a lot for an hour in the morning.
It takes me a minute to hit high gear in the morning.
It is clear a fakenews cycle has been pushed in the West, you guys suffering from mass delusion (again), repeating back the propaganda, market gets propped up, achieves the purpose.
But outside your little bubble, China continues to win. People over here know America is collapsing, and China’s calm confident and SANE style continues to grow their rep as the new global leadership. America panics, China yawns. Also, the second quote shows they know exactly where all the Achilles’ heels are (there are multiple), and can pull the trigger any time they want. They didn’t even need to mention ending treasury purchases, how will Trump pay for his fake tax cuts?
“These irrational moves are not going to help solve any problems. But tarnish the US’s image as a trustworthy country”. —Gao Feng (Commerce Ministry)
“If Trump continues to escalate trade tensions with China, we cannot rule out the possibility that China will strike back by adopting a hard-line approach targeting Dow Jones index giants. Beijing will further open up China’s financial markets to the world, a move that may draw funds from U.S. stock markets as global investors increasingly add Chinese stocks to their portfolios."—China’s state-controlled Global Times
Wait, so their way to fight back is to increase financial market access? Lol.
Amusing yes? Their point, quietly stated as always, is that China will “open up” at the pace they have decided, not a minute sooner, and not in the way that America has decided for them (aka F-U, you have no jurisdiction here), and that you may not like that opening up as much as you think.
We’ve seen this over and over again, that America doesn’t actually know what they are asking for, and then cries later. “Globalism yeah, oh wait why did you screw us over like that?!”. And “China needs to let their currency move with the market, oh a 2% move, reeee, please control your currency more!”.
The fact is America does one-off nonsense, and has no plan here. They do.
So China will open up at their own pace by opening up more quickly in response to US pressure? Wow. Scintillating stuff, real 4D chess.
if you are expecting a lot of growth, you wouldnt want to open up or ipo and have people buying your upside unless you are dependent on them to nurture that upside. when you open up your markets to someone, you are essentially incentivize them to do business with you since they get a portion of your upside.
also technically the best time to open up or ipo is when your growth is about to slow. lol. so you want to reduce your risk by selling it to suckers that dont know that you are close to sucking. then you use the proceeds to pay down debt to further reduce your risk.
lol its quite funny when you buy an adr from china. how its structured you can get really fucked over if china wants to.
Potentially “open up” more quickly in the way CN already plans, not the way the US says they want CN to do. The US got the msg. US is terrified of global capital moving East (see constant financial media propaganda to prop up markets), but it eventually will.
Market risk and USG default risk are the two obvious Achilles’ heels.
Right. US has been cutting global investors in on their losses, CN is keeping upside for their own people and government (SOEs).
wow xinping losing support already…trump 1 chyna 0
It’s so weird, so American fakenews just blocks everything Xie says over there? I don’t see it being reported (from a quick Google news search). That’s how you guys are kept so unaware, firewall keeping out reality.
So far, China says they will/may…
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Crush S&P giants, e.g. ban AAPL
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Stop buying USG debt
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Hold up US financial listings, permits, etc.
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Turn their 1.4B people against American products and crush demand.
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Open up markets and draw capital East
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Tariffs
Game over. So much for “but they can’t compete in trade war because of net imports” fakenews narrative! 
they should honestly sell usg debt. such a sucker’s bet!
China? No, why would they sell their US debt, literally the safest asset in their entire country? The motivation, of course, would be to “punish” the US by devaluing the dollar and increasing borrowing rates in the US, but this would be ultimately counterproductive. Instead of hurting the US, China would decrease the value of US’ debt obligations, drive up long term rates and steepen the yield curve (the Federal Reserve would cut short term rates).
Plus, although China is the US’ biggest single creditor, China only owns about 10% of US debt. How much of this would China sell? Half, or 5% total? That volume would easily be absorbed by other market participants, including the Federal Reserve, which is already in the process of monetary tightening.
Finally, just like with the tariffs, China would probably hurt itself more than it would hurt the US. China is a far worse credit than the US, and selling a large amount of their foreign reserves would hurt their own ability to borrow money. Buyers of the debt would also be happy to make a market when China eagerly crosses the bid/ask spread.
The fact of the matter is, when the US comes after you, there’s not much you can do.
LMAO, surprised you didn’t drop in “risk free rate.”
The US is like a person who put a rope tightly around their neck, climbed up on a chair, and is now growing tired and teetering. Yet bizarrely shouting insults, try to provoke a fight from that position?? All China needs to do is bump the chair. 
But taoism says it’s best to wait, let them do it to themselves.
Already signs the US will fold…
The corporate media preparing for the flip flop “some people inside the white house are pushing back on the president’s bla bla bla,” they build this gradually so it doesn’t look like a sudden reversal out of weakness (which it is). Trump now saying “oh maybe we will scrap plans for restrictions on CN investment.”
Xie called his bluff. Probably a fair bet to short vol now (I’m already short), always risky of course.
Update: bought some China A50 futures (Singapore), catch the bounce.
wow trump punked out wtf
Interesting to see that the general attitude here has “matured”, for a lack of a better word.
10 years ago all of this forum would be hyperventilating all over the place about this and any restriction to free markets (can you imagine, oh no, the horror).
But no, neo-liberal economics is not physics, despite how brainwashed we have all been in the West, and perhaps the USA will be better off after this than before.
My favourite part is “but but what about American consumers who will have to pay more oh noooo”. Well unhook American off useless cheap Chinese crap. They will just end up spending the same amount of money on a lesser number of higher-end American products. In all cases it’s almost all on credit anyways.
cuz china can make more money investing in themselves. they have increased their gdp at a faster rate.
i think gundlach once said that federal reserve should pick up the missign demand and that they are very likely to own everthing. which makes sense considering they can print that paper and control the supply of money, set rates that affect the price of money. and determine the required reserve ratio, this is their biggest bazooka that they rarely use…
as far as china’s debt goes. they can solve it by opening up to other strategic partners. which makes sense. they will sell to people who contribute and benefit from their upside!
the current system where everyone depends on the us is outdated imo. there has to be a better way. its fiat money, low rates. and all shitty.
Blame CFA/MBA. This stuff was taught like a religion (globalism, bla bla, open trade, bla bla). I challenge anyone to show me a single sentence in the CFA texts that describes the downside of globalism? I always found that to be a huge red flag.
Regarding Trump’s talk, here’s the thing. As the POTUS, he doesn’t really have any power to do the things he talks about. But he CAN tweet. And so he can go wild saying confidently “this WILL happen by N date.” Then he has until that date to build a consensus. However when it gets to that date and still no consensus exists, he needs to back down (which you see signs of in the days/weeks leading up to deadline).
Ultimately it’s the S&P500 that needs to sign off. If somehow he were to be able to act, and did so without their approval (they will only approve if it maximizes SPX short-term profits), he would be crushed. That’s what the Mueller witch hunt, and corporate media are there for, to keep a gun to his head so he doesn’t forget.
Since an economic war with CN would almost certainly tank SPX and damage profits (even if long-term it would be the right decision for sustained profits) there is very low probability SPX will sign off. And Xie knows it, that’s why he threatens AAPL etc.