{"id":33202,"date":"2018-04-07T07:33:31","date_gmt":"2018-04-07T12:33:31","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33202"},"modified":"2018-04-07T07:33:31","modified_gmt":"2018-04-07T12:33:31","slug":"here-are-chinas-five-options-for-nuclear-trade-war","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33202","title":{"rendered":"Here Are China’s Five Options For “Nuclear” Trade War"},"content":{"rendered":"
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Here Are China’s Five Options For “Nuclear” Trade War<\/a><\/span><\/h3>\n<\/div>\n
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After Trump ordered the USTR to consider an additional $100BN in tariffs, something we said on Wednesday would happen if the market was dumb enough to allow Trump to think he had a trade war victory by closing green…<\/p>\n

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S&P 500 EXTENDS GAIN ABOVE FRIDAY’S CLOSE, UP AS MUCH AS 1.15%
\nSeeing favorable market response, Trump next raises China tariffs to $100BN<\/p>\n

…China has suddenly found itself in a quandary: as we showed first thing this morning<\/a>, if Beijing were to continue responding to the US in a “tit-for-tat”, it would be unable to retaliate to the latest Trump salvo of a total $150 billion in tariffs for the simple reason that the US does not export $150 billion in products to China<\/strong>.<\/p>\n

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Which doesn’t mean that China is out of options; quite the contrary. The problem is that virtually everything and anything else that Beijing can do, would be a significant escalation. In fact, the five most frequently cited options are all considered “nuclear” and would promptly lead to an even more aggressive response from Washington.<\/p>\n

Here are the five “nuclear” options that China is currently contemplating:<\/p>\n

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  1. A Currency Depreciation<\/strong>. A sharp, one-time yuan devaluation, like the one Beijing unexpectedly carried out in August 2015, could be used to offset some of the effect of tariffs.<\/li>\n
  2. Sales of US Treasurys<\/strong>. Chinese authorities could sell some of its large official-sector holdings of US Treasuries, which would lead to a tightening of US financial conditions.<\/li>\n
  3. Block US services<\/strong>. Chinese authorities could limit access for US companies to the Chinese domestic market, particularly in the services sector, where the US exports $56 billion in services annually and runs a $38 billion surplus.<\/li>\n<\/ol>\n

    …click on the above link to read the rest of the article…<\/p>\n

     <\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Here Are China’s Five Options For “Nuclear” Trade War After Trump ordered the USTR to consider an additional $100BN in tariffs, something we said on Wednesday would happen if the market was dumb enough to allow Trump to think he had a trade war victory by closing green… S&P 500 EXTENDS GAIN ABOVE FRIDAY’S CLOSE, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[2045,130,7844,805,19291,3222,827,4318],"class_list":["post-33202","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-beijing","tag-china","tag-donald-trump","tag-trade","tag-trade-tariffs","tag-trade-war","tag-united-states","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33202"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33202\/revisions"}],"predecessor-version":[{"id":33203,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33202\/revisions\/33203"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}