This will not end well – at all.
China may be preparing to hit back hard in the trade war. In fact, the Chinese Ministry of Commerce said it “strongly urges” the U.S. to back off after the White House blacklisted 28 Chinese companies over alleged human rights violations.
“We strongly urge the U.S. to immediately stop making irresponsible remarks on the issue of Xinjiang, stop interfering with the wrong actions of China’s internal affairs, and remove relevant Chinese entities from the list of entities as soon as possible,” a spokesperson from the Ministry of Commerce said, as quoted by CNBC. “China will also take all necessary measures to resolutely safeguard China’s own interests.”
The comments came after tensions between the U.S. and China grew worse ahead of the planned talks in D.C. later this week. Making things a bit tense, the Chinese Foreign Ministry told folks to “stay tuned” for China to fight back.
Trade War Could Cost the Global Economy $700 Billion by 2020
The trade war between the U.S. and China could lead to a loss $700 billion for the global economy by 2020, says Kristalina Georgieva, the new head of the International Monetary Fund, as noted by MarketWatch.
“Everyone loses in a trade war. Even if growth picks up in 2020, the current rifts could lead to changes that last a generation — broken supply chains, siloed trade sectors, a “digital Berlin Wall” that forces countries to choose between technology systems,” she said.
Stay tuned for more on this developing story.
And, be well prepared for even more downside in the markets. Tensions could easily explode later this week if both sides are unable to resolve anything.