The Real Risk Of The Trade War

  • It is difficult to see the Chinese caving to the demands of the Trump government, which seem to involve a wholesale change of China’s economic model.
  • Either some middle ground is found or we risk a serious escalation with multiple risks to the state of the world economy, with many known and unknown facilities.
  • The end state could be a wholesale decoupling of the American and Chinese economies, and while some would applaud such an outcome, it’s unlikely to be better than what we’ve got.

Source: The Real Risk Of The Trade War | Seeking Alpha