Last week President Trump made good on promises to force the Chinese into a position of better trade balance after years of currency manipulation and tariffs on US exports.
But the Dow dropped like a rock after fears that US exporters would be hit hard with the negative effects of a trade war with China.
Then came Monday and China flinched. Rather than responding with reciprocal import tariffs on US products, Chinese leaders offered to negotiate better trade deals to avoid a massive fight.
That was likely the entire motive behind Trump’s announcement in the first place.
And the Chinese bit hard.
Here’s more from Newsmax…
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’s point increase was the largest single-day gain since 2008. 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.”