Will Trump start a trade war with China?

With the unlikely election of Donald Trump as President of the United States, the outlook for global trade has suddenly become much more unpredictable. The US has some very legitimate grievances when it comes to China’s trade practices and currency manipulation, but just how far will Donald Trump push these issues. Will he overplay his hand? Will we have a trade war between the US and China? Will China retaliate by dumping US Treasuries?

2017 will be an interesting year . . .

  

Fixing China’s economy

The video above offers a helpful summary of the challenges facing China’s economy, which is slowing after decades of rapid growth.

The challenges are real, but there’s a question as to whether China’s leadership under Xi Jinping is up to the task. Loosening the grips of the government is required, but Xi is going in the opposite direction.

  

Chinese app WeChat gets lots of love in Silicon Valley

We Chat has become a very popular app in China, with one reason being you can do so much from the app as explained above. Now Silicon Valley is taking notice and being “inspired” by the app, as even Mark Zuckerberg seems to have noticed. Expect Facebook Messenger to start having much of the same functionality as WeChat.

  

Chinese Communist Party Bans Fun

golfer swinging at sunset

The stupidity of Chinese leadership and Xi Jinping regime seems to know no bounds:

China’s ruling Communist Party has banned its 88 million members from playing golf, having sex outside of marriage and partaking in “extravagant eating and drinking,” according to the country’s state media.

Good grief . . . .

  

China intimidates financial journalists

The whole China story is turning into a bad joke.

This latest development is particularly troubling, as the Chinese government appears to be singling out a respected business journalist for their joke of a stock market. Read about the forced confession here.

The game in China has always been rigged. It was easy to keep playing this rigged game as Chinese industry fueled massive growth, the much of the fruits of that labor has been wasted on unnecessary projects and plenty of graft and corruption.

Throw in a new leader obsessed with consolidating power and promoting Chinese pride and strength over addressing real economic issue, and now you have real problems. Xi Jinping may turn out to be a complete disaster for China.