President Trump orders US manufacturers to move from China. What may have happened?
- US concerns that initiatives to advance on intellectual property rights may have never started.The US claims losses of $600 billion from intellectual property theft in China (https://www.usitc.gov/publications/332/pub4226.pdf).
- Ongoing stealth devaluation and tighter internal capital controls.
- A possible imminent intervention in Hong Kong. It is estimated that Hong Kong has around $400 billion in reserves, badly needed for China’s dollar shortage. Chart courtesy Alhambra.
- Despite renewed talks, more tariffs. China unveiled retaliatory tariffs against about $75bn (£60bn) worth of US goods, putting up to 10% on top of existing rates.
- Rising outflows from China and into US.