#TIA – This item is published with a headline that is “subject to change” overnight. It might well have been that EU is winning the war
“One thing came through loud and clear in President Trump’s press conference Wednesday with European Commission President Jean-Claude Juncker. When they announced an alliance against third parties’ “unfair trading practices,” they didn’t even have to mention China by name for listeners to know who their target was. Cooperation between the U.S. and EU will squeeze China’s protectionist model, and even before this agreement, there’s been evidence that China is already running up the white flag.
Yes, China is acting tough in one sense, quickly imposing tariffs in retaliation for those enacted by the Trump administration. But while U.S. stocks approach all-time highs and the dollar grows stronger, Chinese stocks are in a bear market, down 25% since January. The yuan had its worst single month ever in June, and is well on its way to a repeat this month. Chinese corporate bonds have defaulted at a record rate in the past six months, yet this week China unveiled a new stimulus program designed to encourage even more corporate borrowing.”
Read more at The Wall Street Journal