Trump’s Response To China’s Trade War On The U.S. Is Working


In a story entitled “Investors are pulling billions out of Chinese stocks and the bleeding is unlikely to stop anytime soon,” Business Insider touts yet another indicator that President Trump’s tariff response to China’s Trade War against the U.S. is working.

Advertisement

The Critical Bullet Points

* Investors are pulling billions from China’s stock market as political turmoil weighs on economic growth and tariffs hurt Chinese shares. 
* Just shy of $6 billion has flowed out of funds invested in Chinese stocks since the start of the year, the Financial Times reported, citing EPFR Global data. 
* Economists expect the bleeding to continue as China’s economy is set to slow down.

Investors are pulling out of Chinese Markets. This will exacerbate the harmful effects of U.S tariffs on Chinese goods and services and their overall economy. Coupled with the stories I’ve reported earlier, here, here and here, regarding the increasing departure of U.S. companies from China, this appears to show an accelerating effect on a wider part of the Chinese economy.

Where might these investors go? Well folks, in times of economic uncertainty, whenever investors want to hide, they tend to turn to the U.S. Bond market. Where does that leave us right now? We have U.S. companies moving their manufacturing operations out of China to countries more aligned with the United States. We have investors in the Chinese stock market abandoning it at an increasing clip…and buying “stock in America,” as the old U.S. Savings Bond commercials used to tout.

Advertisement

Advantage, Trump. Golf Clap.

Mike Ford, a retired Infantry Officer, writes on Military, Foreign Affairs and occasionally dabbles in Political and Economic matters.

Follow him on Twitter: @MikeFor10394583

You can find his other Red State work here.

Recommended

Join the conversation as a VIP Member

Trending on RedState Videos