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Why Trump Has All The Leverage In China Trade Negotiations, In 3 Charts
Those curious who is more impacted by the sudden re-escalation in trade hostilities between the US and China can get a quick answer by looking at the market reaction to Sunday's unexpected news: while the S&P is down barely 1%, overnight Chinese stocks plunged nearly 6%, their biggest drop in over three years, indicating just how much more sensitive to every twist and turn in trade relations Chinese stocks are.
Of course, one can counter just how smaller - and far less relevant - the Chinese stock market is in comparison to the S&P500, which is also the basis for the vast majority of household net worth for Americans, and global investors (whereas in China, it is the local housing that is far more critical and accounts for roughly 70% of household net worth).
https://www.zerohedge.com/news/2019-05-06/why-trump-has-all-leverage-china-trade-talks-3-charts
https://defence.pk/pdf/threads/why-...egotiations-in-3-charts.617090/#post-11432185