China Blinks: Huge Rally as Trade War Perhaps Averted

Newsmax ^ | 26 Mar 2018 | Jason Devaney

[mandaladon]

Following Friday's massive losses on Wall Street amid reports of a trade war between the United States and China, the market bounced back Monday after China signaled it is willing to negotiate better trade deals with the Trump administration.

The Dow Jones (+618.1 points), S&P 500 (+63.4 points), and Nasdaq (229.4 points) all posted strong gains Monday. The performances are being attributed to calmed fears that the U.S. and China will engage in a trade war to out-do each other's tariffs on imports.

The increases marked the biggest one-day gain since August 2015. The Financial Times reported early Monday morning that China is offering to buy more U.S.-made semiconductors to help reduce the $375 billion merchandise trade surplus it has with America.

Gordon Chang, an expert on North Korea and China, told Newsmax TV Americans shouldn't worry about a trade war anyway because it would be a one-sided affair.

"Everyone has been worried about a trade war, but we shouldn't because we hold most of the high cards," Chang said. "And the Chinese really have no way to win a trade war with the United States if they face a determined American president."

Chang noted that a trade war between the two nations has actually been ongoing for several years because "U.S. presidents have not been willing to use U.S. national power to protect American businesses and workers. And I think finally we now have a glimpse of someone in the White House who actually understands that we can prevail on this."

[mandaladon]

And I think finally we now have a glimpse of someone in the White House who actually understands that we can prevail on this."~~~~~~~~~~~~~~~~~In other words we have a real leader!

[Hostage]

I saw this coming and posted it to a couple of FR snits. They know who they are.

[Pearls Before Swine]

It wouldn’t surprise me if DJT and Xi had worked some of this out in advance.

[rightwingcrazy]

Hyenas scatter if they discover that the elephant is still alive and kicking, no longer an easy meal.

[teletech]

I think China knows full well who would win a trade war.

[Hostage]

Yep.

[A_Former_Democrat]

After years and years of traitorous “globalists” giving away our trade, money, tech, and sovereignty

That China blinked ASAP is the proof in the pudding

Now let’s go after that GD Mexico

[Rennes Templar]

I was disgusted watching Britt Hume on Fox this afternoon. He said Trump is always saying one thing and doing another. He has no clue how Trump operates, after all this time. Or he doesn’t want to know. Read the Art of the Deal, Britt!

[VeniVidiVici]

Chang noted that a trade war between the two nations has actually been ongoing for several years because "U.S. presidents have not been willing to use U.S. national power to protect American businesses and workers. And I think finally we now have a glimpse of someone in the White House who actually understands that we can prevail on this."

Wow. Go figure. A president that actually puts Americans first can better trade for America.

Obama AND Bush SUCK!!!!

[Windflier]

Amazing what a bit of real leadership can accomplish, isn’t it?

[Candor7]

President Trump will be dining on Chinese take out for quite a while!

[ThePatriotsFlag]

Good news ... You and I can TURN OFF Brit Hume (and we do). But Brit Hume cannot “turn off” the President! :-)

[MGunny]

It’s truly amazing how once again the pundits and investors are wrong. They hate DJT so much they are willing to tank our nation.

[SharpRightTurn]

“Gordon Chang, an expert on North Korea and China, told Newsmax TV Americans shouldn’t worry about a trade war anyway because it would be a one-sided affair.”

I have been impressed with Chang’s analysis every time I hear him. A very smart guy. If Trump isn’t using him as an advisor in some capacity yet, I hope Trump will bring him in soon.

[noiseman]

All of the gnashing of teeth over a potential trade war has had me a bit puzzled. When we are obviously already on the losing end of the current state of trade with certain countries, what more do we have to lose? Especially where China is concerned, what could we possibly have to worry about when they buy nearly nothing from us anyway? It seems to me the countries that stand to lose in a trade war are the ones with big trade surpluses.

I know there are some exceptions, like U.S. agricultural products and Boeing aircraft, but I don’t think most countries that import food from us can exactly forego it, and China’s rapid commercial aviation expansion means they desperately need more aircraft from both Airbus and Boeing.

[Mariner]

Everyone who bothered to look knew China had no leverage over the US on trade.

None.

Zip.

Nada.

It could be simply explained to a 5 year old. And then they would be able to explain it simply to the the astute Free Trader.

[oincobx]

>>>Chang noted that a trade war between the two nations has actually been ongoing for several years

If we are using the stock market as guide to who is winning the trade war, how do we interpret the rise in the DJIA from 6,600 in 2009 to over 24,000 today?

[central_va]

What’s thetr to negotiate? We are in a trade war now so none of this makes sense, is China going to LOWER their general tariff rates? If not then this is a BS.

[central_va]

What exaclty is “blinking”? What is China going to give up here?

[chief lee runamok]

This tends to capture the Chinese attention as well:

“On Friday, the Chinese Ministry of National Defense announced that a U.S. Navy warship had sailed near one of China’s disputed possessions in the Spratly Islands to stage a freedom of navigation operation. The Ministry called the operation a “serious military provocation.”

https://thediplomat.com/2018/03/china-condemns-us-fonop-near-mischief-reef-in-the-south-china-sea/

Second freedom of passage there within the last week.