China would outlast the U.S. in a trade war, which is a “distinct possibility” next year after President-elect Donald Trump takes office, a commentator wrote in the $1 billion Pine River China Fund’s investor letter.
China’s government would be better placed than the U.S. to marshal state resources to cushion the impact on exporters, wrote James Wang, a City University of Hong Kong professor who pens a monthly commentary for the fund. Privately-owned Chinese exporters would be worse hit than state-controlled peers because they have less political clout in Beijing, he said. Continue reading
STOCK markets across the world plunged today amid growing fears China’s monstrous debt bubble is about to burst and trigger a devastating financial crisis.
Investors are becoming increasingly nervous the world’s second-largest economy is about to trigger a crash, which could be worse than the stock mayhem witnessed at the start of this year and last August.
China has been taking on yet more debt in what is thought to be a bid to combat its economic slowdown.
The Asian country’s deficits reached 237 per cent of GDP in the first quarter of this year, from 148 per cent at the end of 2007, according to the Financial Times.