China may need to make significant compromise to end the US-China trade war. The worst is once US has the first big bite in Round 2 of negotiation, it might continue to ask for more advantages in future. In fact, US and China have reached agreements a few months ago in Round 1 discussions but it has been forgotten easily.
Should China shows its strength or weakness, this is a Trillion dollar question. It is a mind game as US may not want to end up with lose-lose situation as well, especially mid term election is coming soon. Ideally, US may hope China could be similar to Japan, compromise as a follower for decades.
China has 3 main wild cards:
1) Ability to endure, use Lose-Lose situation to fight back US
2) Financial (Foreign Reserve / US Debt / RMB Depreciation …)
3) Political (International Alliance – BRICS + emerging markets / WTO / 50% opponents of Trump in US / US businesses have significant gains in China market…)
In the current US-China trade war, 50% of the world (except US) is affected. Both China and Hong Kong stock markets are technically bear markets considering stock indices have dropped more than 20% over the past 1 year.
There are 3 main stock strategies for the current market:
1) Momentum trading for US stocks (buy high sell higher)
2) Shorting for stocks with bearish trends (emerging markets)
3) Crisis investing for undervalue stocks (especially China & Hong Kong)
Learn from Dr Tee in high quality 4hr stock investment course to position in current global stock market with 3 stock strategies above during US-China trade war. Register Here.
