The prospect of a revived trade war between Beijing and Washington threatens to undermine this year’s blistering rally in Chinese stocks and weigh on the yuan.
Global equities took a hit in U.S. hours on Friday after President Donald Trump warned he would impose a "massive” increase of tariffs on Chinese goods. He later said he would put an additional 100% tariff on China from Nov. 1, as well as place export controls on critical software. He spoke out after Beijing unveiled curbs on the export of rare earths earlier in the week.
While Chinese markets will get their first chance to respond on Monday, any following of the U.S. selloff may be tempered by weekend signals from the White House that it’s open to a deal and Trump declaring the U.S. wanted to help, not hurt China.
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