In the trade conflict with the United States, China has found the fatal weakness of Trump: his obsession with the stock market.
People close to China's decision-making level revealed that Chinese leader Xi Jinping bet that the U.S. economy cannot withstand the protracted trade conflict with the Chinese economy. The reason why China adheres to a tough stance is because it firmly believes that the escalating trade war will lead to the collapse of the U.S. market.
China expects that the prospect of another market crash will eventually force Trump to negotiate at a summit with Xi Jinping later this month.
Trump often treats the U.S. stock market as a real-time barometer to measure his ability to manage the economy, which also makes Chinese officials see its weaknesses.
China has found the fatal weakness of Trump: his obsession with the stock market.
byu/Same_Beautiful9174 ineconomy
Posted by Same_Beautiful9174
3 Comments
I Expect another Ai breakthrough from China just before the summit which will cause a stock market drop..
Why not trade Chinese stocks instead ?
After the 2008 crash, the world watched as the US government bailed out the banks who caused the crash.
Then the US government would use sanctions when they felt like it. China, Russia and others would say the US was weaponizing the dollar.
That was the birth of BRICS.
What you see now is the results of that 2008 crash.
Back then, the US government had power.
Now, they don’t. When you have a country that doesn’t manufacture much and depends on imports, it doesn’t have much of any power.
trump started the trade wars. China is really just behaving like a parent disciplining a spoiled kid.
I think everyone knows the US politicians tout the stock market like it’s where all of the US’s money is at when in reality, the US stock market doesn’t reflect the US economy.
The politicians focus on the stock market because they know they messed up the economy years ago.