According to Wall Street Journal sources (paywall), the Trump administration may take another step in the ongoing trade war by using ‘ export controls, indictments and other tools to counter the theft of intellectual property’, notes the research team at Danske Bank.
Key Quotes
“This might be the first sign that Trump will turn more hawkish on China after elections. While there were more encouraging signs before the elections, this is bad news, in particular ahead of the anticipated Xi-Trump meeting after G20 later this month.”
“Another story reported that the administration is still considering imposing tariffs on auto imports due to national security, something that could jeopardise the US-EU trade talks. On a positive note, China’s Vice Premier Liu is said to be visiting the US ahead of the Xi-Trump meeting. An escalation of the trade war is an important risk factor to growth and market sentiment.”
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