Big swings continued in Wall Street with the Dow initially spooked by news of China's remark on the need to retaliate in response to the US tariffs then calmed down and turned positive on subsequent news that China encourages US to meet halfway in the negotiation.
It sounded good ''meeting halfway" but I wonder if this is China's strategy to tell the world that they're doing everything to resolve the matter and that it was POTUS that is playing hardball, not them. But I also wonder what meeting halfway means and can achieve. There are certain US demands that require China to stop doing -e.g in relation to IP theft and stopping the export of fentanyl to US (if China can somehow stop their crooks ) amongst others - there is no meeting halfway there. POTUS art of negotiation works on those with lower bargaining power or position of power, but they cannot do what they did to Mexico on China.
The US administration is not engaging with China just as Boris J is not with the EU, they lay their demands and expect them to be met to progress to the next stage. The bully tactics won't work with the bigger boys, and they face their own medicine in the process. China has showed by a sheer act of yuan reset it could cause a market mayhem in Wall Street and that's only just only of the many other avenues they can pursue. US is actually shooting themselves in the foot, as the higher US tariffs caused China to respond by not buying US soybeans and imposing tariffs on US farm goods, US farmers are suffering and lumbered with inventory stockpiles in their backyard and in the meantime, Chinese farms (e.g pig) are looking to replace US soybeans with alternatives including lysene (which China produces a lot) and seeking animal feed from other countries. You can only imagine that if this continues, the US would likely lose considerable market share of China's soybean and animal feed consumption in the years to come.
