China Trade Stouch

Measured responses have characterised China’s behaviour in the trade spat with the United States. Reactions to US actions have been proportionate and thus far, Beijing has refrained from the temptation to one-up Washington. 

No doubt China recognises the geo-political goodwill engendered by such conduct as well as from speaking up for the multi-lateral trading system. But other factors are also at play. China exports far more to America – around US$500 billion – than America exports to China – around US$130 billion1– leaving China with fewer levers in the dispute.

For clarity on what has transpired so far continue reading our latest market beat.

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