Quote:
Originally Posted by scho63
Great post and I have a single question:
What is the perception of the trade war with China as it pertains to China's complete theft of our intellectual property, the manipulation of the currency and the complete trade imbalance? |
I don't think there's a simple answer to this. My own personal view is that Trump is certainly on the right track in standing up to China, particularly on the issue of IP theft, but his haphazard methods aren't always ideal, certainly not for markets that don't appreciate his 'madman' style of negotiating (if that's even his deliberate intention). I also don't think it's clear at all that China's currency is 'manipulated' (a lot of countries run managed exchange rates for very genuine reasons) or undervalued right now - many smart people who would argue the exact opposite (based on different FX valuation frameworks). And trade balance is determined by a number of factors that aren't always so clear cut.
In my industry, I'd say there's a general belief that standing up to China is a good thing, but it's an extremely difficult issue to fix and Trump is proving that daily.