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Stock Market Could Be Getting Xi’s Speech Wrong; It Doesn’t Mean There Won’t Be a Trade War

Posted April 11, 2018

Under Economic Issues, International Trade Issues

(Evelyn Cheng – CNBC)

If U.S. stock investors believe Chinese President Xi Jinping’s latest speech will significantly tone down the escalating trade dispute, some geopolitics analysts think otherwise.

“There was nothing new in that speech. ... What was included was incremental steps to expand market access,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies.

“President Xi could have made much more significant offerings in the speech if he wanted to, without paying a domestic, political cost. But I think [Beijing’s] impression is the Trump administration can be bought off with some market adjustments in China without constraining Chinese industrial policy,” Kennedy said. “It’s part of a dynamic that suggests this is going to be a long, drawn-out contest.” Click here to read more.