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10 Aug 2019 (AFR) – Trade war may be over – Stalemate could drive search-for-yield rally

[COMMENT: This article has a very interesting take on the current trade war that seems to be just a tit-for-tat exchange; but which could be a whole lot more.]

(10 August 2019, AFR, p29,  Christopher Joye, Columnist)

‘While trade tensions have recently erupted, this may presage a permanent impasse that could unleash the mother of all search-for-yield rallies. Back in May we argued that there was every chance the US and China would never resolve a trade deal and that America’s strategic priority was, in fact, to use tariffs as a tool to shift its critical supply chains away from its premier geopolitical foe. This reflected the insight that there was an emerging consensus in Washington that decades of trying to positively encourage China to play by the rules of the Western liberal-democratic trading regime have not worked and, moreover, are never likely to do so.’

‘This could be the end of the road for the current trade war – a semi-permanent stalemate between the two would-be global hegemons.’

Read more at AFR.com (might need AFR log in access, or try: AFR.com/trial)

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