The week has been marked by renewed market turbulence in China, as Trump’s administration is allegedly considering a 25% tariff rate on 200bn worth of Chinese goods, instead of the 10% rate that was initially communicated. Is it a coincidence that Trump and his administration threaten with a higher tariff rate just as USD/CNY is approaching levels that are almost 10% higher than when the trade war started? The tensions are visible stones in China’s shoes, as Shanghai Composite has sold off in a pace that has washed away the recent slight comeback very swiftly. There are also early signs that the market turmoil spills ... (full story)