China’s responses to potential trade restrictions will be well thought out, strategic, and aimed at winning a useful advantage. There is a tendency for currency values to neutralize sanctions or restrictions in a trade battle. Keeping an eye on China’s game plan is going to be essential in the years ahead. Here is a good link, focusing on China and the EU.
The subject starts with the article below, and this link connects to a series of items for further consideration if you wish. Published by Rhodium Group.
EU-China FDI: Working towards reciprocity in investment relations
As Chinese investment flows into the European Union increase, the lack of an equal market is increasingly becoming a problem in investment relations with China. While Chinese investors enjoy the same rights in the EU market as any European business, China continues to limit access for foreign companies in many sectors. A new report, delivered in two parts, explores how these trends influenced investment in 2017.
This sector-by-sector comparison reveals that Chinese investments into the EU surpassed investments by EU companies in China in 10 out of 15 industries in 2017. It also finds that the majority of large Chinese acquisitions in the EU would not have been possible for EU companies in China, as Chinese government regulations prevent foreign companies from doing business in the respective sectors. The imbalance is most visible in the transport and infrastructure sectors.
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Tom Kutzen has more than thirty years experience in the financial markets working across many markets working with all types of participant investors and many luminaries of the financial world. Tom is now sharing his years of experience in the capital markets with individuals and organizations outside the financial services industry in order to help them develop the skills necessary to further their own financial education, financial literacy and economic success. The information in TKSmartworth will cover categories ranging from Volatility; Economic Growth, Trade & Inflation; Equities; Bonds; Currencies; Derivatives; Participants; Central Bank Policy; and more.