Trade

Trump Demands Access to China But Might Impose His Own Limits

JM Ashby
Written by JM Ashby

From almost the very beginning of Trump's trade war, the White House has called on China to expand access to their financial markets. China should 'level the playing field,' they say.

They say that and yet Bloomberg reports that the White House is considering imposing limits on American investment in China's markets.

Trump administration officials are discussing ways to limit U.S. investors’ portfolio flows into China in a move that would have repercussions for billions of dollars in investment pegged to major indexes, according to people familiar with the internal deliberations, Bloomberg News reports.

The discussions are occurring as Washington and Beijing negotiate a potential truce in their trade war that’s rattled the world’s two biggest economies and investors for more than a year. They also come as China is removing limits on foreign investment in its financial markets. A U.S. crackdown on capital flows would therefore expose a new pressure point in the economic dispute and cause disruption well beyond the hundreds of billions in tariffs the two sides have levied against each other.

The White House is reportedly considering delisting Chinese companies from American stock exchanges and placing strict limits on the amount that pension funds can invest in Chinese-owned firms.

It remains to be seen what this could mean for upcoming trade talks, but it's probably not good. Trump is threatening to derail his own demands of China by cutting off access to their markets himself at a time when China has agreed to buy a limited amount of American agricultural goods. How long can the limited amount of cooperation we've seen in recent weeks last while Trump is threatening to burn the last remaining bridges?

This only reinforces the idea that Trump believes he should get everything and China should get nothing.

  • muselet

    Call me crazy, but I think at least some of the investors are going to be mighty steamed about getting cut off from China.

    They won’t change their voting habits (straight R, every time), but they’ll be grrrr! angry.

    At this point, I don’t think it’ll take much for China to decide the US simply isn’t worth the aggro and leave us to our own devices. I wonder how Donald Trump will try to spin that as a victory for Murca.

    –alopecia

    • stacib23

      It will be either Obama’s or Hillary’s fault plus something, something emails.

      • muselet

        And antifa. Can’t forget antifa.

        –alopecia

  • Nefercat

    This only reinforces the idea that Trump believes he should get everything and China should get nothing.

    This is trump’s core. He cannot conceive of a win-win negotiation. There can only be a winner (him) and a loser. He is an empty, pathetic bully who can only value his accomplishments through the lens of someone else’s loss.

    • 1933john

      All that and a “piece of shit” to boot!