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Title : President Trump Will Win The Trade War Because China Has More To Lose
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President Trump Will Win The Trade War Because China Has More To Lose

A U.S. flag is seen during a welcoming ceremony in Beijing, China. Photo by Thomas Peter/Reuters

Liz Peek, The Hill: Trump is winning the trade war because China has more to lose

Don’t look now, but there are numerous signs that President Trump is winning the trade war with China. While the battle over tariffs and protecting intellectual property may eventually damage the United States’ economy, there are signs that China is already paying a price for its refusal to bend to Trump’s demands.

One indicator of that price is the sharp plunge in China’s stock exchanges. Since the White House announced the first tariffs — on washing machines and solar cells on Jan. 22 — the Shanghai Index of Chinese stocks is down nearly 20 percent, while the S&P 500 is off less than 1 percent.

That decline of share values is occurring in spite of the first-time inclusion in the MSCI, an important international index, of many Chinese stocks on June 1. That initial index listing attracted billions of dollars toward Chinese stocks, in expectation it would boost prices, but it did not.

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WNU Editor: China enjoys a massive trade surplus with the U.S., as well as tens of billions in investments, joint ventures, management and technical expertise. This is now all at risk.

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