Europe’s stock markets are reacting negatively to the latest developments in the trade war. A few minutes ago the editor-in-chief of the Global Times, Hu Xijin, tweeted that fewer and fewer Chinese believed in a deal. And even if it came about, it would hardly be relevant. China is preparing for a long trade war.
Last night the Hong Kong Bill of Rights on Human Rights and Democracy passed by the US Senate. It caused sharp reactions in Beijing. China had called in the ambassador of the USA. Yan Shuang, the spokesman of the Chinese foreign ministry, had rejected the “Hong Kong Bill” with sharp words:
„The bill disregards the facts, confuses right and wrong, violates the axioms, plays with double standards, openly intervenes in Hong Kong affairs, interferes in China’s internal affairs, and seriously violates the basic norms of international law and international relations. The Chinese side strongly condemns and resolutely opposes this (..). We will immediately take measures to prevent the case from becoming a law. We will immediately stop interfering in Hong Kong affairs and interfering in China’s internal affairs so as not to ignite the fire and suffer from self-sufficiency”.
“If the US side is willing to go its own way, China will surely take effective measures to resolutely counteract and firmly safeguard national sovereignty, security, and development interests.“
Yesterday’s statements by Trump that he would significantly increase tariffs if a deal was not concluded also caused great displeasure in Beijing:
But the stock markets have already priced in this deal umpteen times. Is it about to be priced out now?