About this "US-China 'trade war'", one good indicator is performance of respective countries' stockmarkets because these are good reflections of the degree of confidence or insecurity of market players in the economy.
US DJIA vs CN Shanghai Composite indeces the past 52 weeks, until last Friday, August 17, 2018.
The digression is very evident. Even more for the past 3 years, DJIA is +46.8%, Shanghai is -32.7%.
Data from https://quotes.wsj.com/index/DJIA.
Xi Jinping and the China Communist Party made a big mistake of challenging Trump. CN is a big time protectionist economy, with high tariffs and non-tariff barriers. They should have recognized it and simply liberalized their trade and investments.
Now the hardship for many CN corporations and state-owned enterprises will be several times larger than the hardship of US companies.
See also: US-CN 'trade war' pummels CN the protectionist, August 3, 2018
US DJIA vs CN Shanghai Composite indeces the past 52 weeks, until last Friday, August 17, 2018.
The digression is very evident. Even more for the past 3 years, DJIA is +46.8%, Shanghai is -32.7%.
Data from https://quotes.wsj.com/index/DJIA.
Xi Jinping and the China Communist Party made a big mistake of challenging Trump. CN is a big time protectionist economy, with high tariffs and non-tariff barriers. They should have recognized it and simply liberalized their trade and investments.
Now the hardship for many CN corporations and state-owned enterprises will be several times larger than the hardship of US companies.
See also: US-CN 'trade war' pummels CN the protectionist, August 3, 2018
No comments:
Post a Comment