This may be wishful thinking, as China has at least four significant responses it can pursue. Each has major significance for investors, capital markets and economic activity in our region.
SINGAPORE (Jun 3): During the 19th century, China was a punching bag for Western powers. It is remembered by many Chinese as the “Century of Humiliation”, and there is a determination not to allow a repeat of this situation. This means China is not going to roll over to the increasingly belligerent demands of US President Donald Trump.0
The American narrative on the trade war is that some damage will be done to the US. This can be countered by subsidies such as the US$16 billion ($22 billion) in extra aid paid to US farmers. The narrative is confident that more damage will be done to the Chinese economy and that China will yield to all US demands.
