How China Wins the Trade War - August 9, 2018

August 09 , 2018

The New York Times：How China Wins the Trade War
The New York Times comments: "To "win" a trade war... the United States would have to impose tariffs that somehow hurt the Chinese economy so badly that its leaders improve their treatment of American intellectual property, a longtime demand by American trade negotiators. The health of China's economy depends on exporting to the United States, so, the thinking goes, the Chinese government will capitulate to American demands. This strategy is certain to backfire."
CNBC：Chinese leadership is facing a rare backlash for its handling of the US trade dispute
CNBC reports: "Some critics saying that an overly nationalistic Chinese stance may have hardened the US position. President Xi Jinping still has a firm grip on power, but an unusual surge of criticism about economic policy and how the government has handled the trade war has revealed rare cracks in the ruling Communist Party. There have been signs of a shift in China's messaging."
The Wall Street Journal：China's Central Bank Lets the Credit Flow
The Wall Street Journal reports: "Asian equities were mixed Thursday, with a jump in Chinese stocks standing out from the pack. China's tech-heavy Shenzhen ChiNext rose 3.4% in morning trading, and the Shanghai Composite rose by 1.8%. Japan's Nikkei fell 0.1%, while Korea's Kospi was flat. Short-term lending rates in China have dropped to their lowest since July 2015, as the government stimulates the economy. Conditions have become very easy in China's money markets—meaning commercial banks can borrow cheaply, which should encourage lending to companies and individuals."

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