{"id":129155,"date":"2018-06-27T09:18:29","date_gmt":"2018-06-27T13:18:29","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=129155"},"modified":"2018-06-27T08:25:16","modified_gmt":"2018-06-27T12:25:16","slug":"chinas-central-bank-gears-up-for-trade-war-trump-deserves-one-out-of-three-cheers","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/06\/chinas-central-bank-gears-up-for-trade-war-trump-deserves-one-out-of-three-cheers\/","title":{"rendered":"China\u2019s central bank gears up for trade war, Trump deserves \u2018one out of three cheers\u2019"},"content":{"rendered":"
June 27, 2018<\/div>
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By George Prior<\/strong><\/em><\/p>\n

As China\u2019s central bank frees up funds for a looming trade war, Trump deserves at least \u2018one out of three cheers\u2019, affirms a senior analyst at one of the world\u2019s largest independent financial advisory organisations.<\/p>\n

The comments from Tom Elliot, deVere Group\u2019s International Investment Strategist, come as U.S. President Donald Trump appears to be on the cusp of escalating his trade war with China.<\/p>\n

Mr Elliott observes:\u00a0\u201cThis week, the Trump administration is likely to reveal plans to limit Chinese investment in American firms and block the ability of U.S. companies to some high-tech products to China.<\/p>\n

\u201cMeanwhile, China’s central bank reducing its reserve requirements for its banks is significant. Is it just to add pressure on the U.S., by looking like they won\u2019t back down and are preparing the economy for the worst? Or do they actually think no agreement to avert trade wars will be reached and that this is necessary?\u201d<\/p>\n

He continues: \u201cRelaxing bank reserve requirements allows banks to lend out more money than previously was the case. It\u2019s traditionally something they do if the economy looks set to weaken. Of course, they aren\u2019t publicly linking the two because the Communist Party would want to avoid a situation whereby the Chinese population sense their leaders have \u2018lost\u2019 a trade dispute.\u201d<\/p>

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Mr Elliott goes on to say: \u201cThe escalating dispute with China is as much about legitimate U.S. security considerations as it is about Trump\u2019s apparent lack of understanding of the benefits of free trade.<\/p>\n

\u201cThe Trump administration objects to what they see as the stealing and forced licencing of U.S. technology, by China, from American companies that do business in China. And the lack of access to the Chinese market for U.S. businesses in general, despite China’s membership of the World Trade Organisation (WTO) and numerous trade agreements.<\/p>\n

\u201cOn this the EU, Australia and Japan are in agreement, but show far less willingness to stand up to China. So, Trump deserves at least one out of three cheers for what he\u2019s doing.\u201d<\/p>\n

Earlier this week, Nigel Green, the founder and CEO of deVere Group, commented: \u201cThere really hasn\u2019t been any major asset class or any part of the world Trump hasn\u2019t spoken out against in recent weeks.\u00a0 As such, if investors are serious about growing and safeguarding their wealth, complacency should no longer be an option. Vigilance is crucial.<\/p>\n

\u201cNow is the time for investors to ensure that their portfolios are properly diversified.<\/p>\n

\u201cAs history teaches us, diversification is the best way an investor can position themselves to mitigate risks – and also, importantly, to benefit from the buying opportunities that all bouts of market volatility present.\u201d<\/p>\n

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About:<\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/em><\/p>\n

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By George Prior As China\u2019s central bank frees up funds for a looming trade war, Trump deserves at least \u2018one out of three cheers\u2019, affirms a senior analyst at one of the world\u2019s largest independent financial advisory organisations. The comments from Tom Elliot, deVere Group\u2019s International Investment Strategist, come as U.S. President Donald Trump appears […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-129155","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=129155"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129155\/revisions"}],"predecessor-version":[{"id":129157,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129155\/revisions\/129157"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=129155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=129155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=129155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}