In the hours before American equity markets open for trading, China sent a huge sell signal to the traders on Wall Street. Bloomberg reports:
China called planned U.S. tariffs on an additional $300 billion in Chinese goods a violation of accords reached by Presidents Donald Trump and Xi Jinping, signaling an American move earlier this week to delay some of those levies was not enough to stave off retaliation.
The effects already are manifest:
European stocks declined and U.S. equity futures fell. The Stoxx Europe 600 index moved lower while the three main American equity contracts dropped.
President Trump has already stated the obvious: China wants him to lose his re-election bid so that a “stiff” from the Democrats will replace him and be a pushover, letting China return to the good old days of rigging trade, deindustrializing the USA, and preparing to replace us a the global hegemon. Frontrunner, Joe Biden, whose son has prospered thanks to Chinese investment in his hedge fund, has already signaled his passivity:
“China is going to eat our lunch? Come on, man…they can’t even figure out how to deal with the fact that they have this great division between the China Sea and the mountains in the east, I mean in the west.”
Biden continued “they can’t figure out how they’re going to deal with the corruption that exists within the system. I mean, you know, they’re not bad folks, folks. But guess what, they’re not, they’re not competition for us.”
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