China draws the bottom line in a trade war – ANZ

Analysts at ANZ recently conveyed details of China’s latest white paper on trade talks with the US and press conference held by the Chinese authorities then after.

The report mentions China’s retaliatory steps that are not yet implemented while also highlighting the key events to watch in June month.

Among the retaliatory steps, controlling rare earth exports to the US and establishing an “unreliable entity” list to protect China’s national interest grabbed market attention.

On the other hand, the US Vice President’s speech on China on June 04, G20 finance ministers and central bank governors meeting in Japan during June 08-09 and the G20 summit to be held on June 28-29 will be crucial to watch.

Based on current developments, the ANZ holds its view that the trade war risks will extend at least into 2020.