“Chinese President XI Shifts Trade Focus to Southeast Asia While US-CHINA Ties Strain Amid Trump’s Sharp Remarks.”, – WRITE: www.fxempire.com
“I wouldn’t call it a position of strenguth, but it’s getting stronger considering anything An Attractive Option Because Is Not The United States Right Now. ”
On China’s Trade Allians, The Recent Slump in Exports To The Us and Jump in Shipments to The Rest of the World, Millar Commented:
“IT’s not allians, but is not all TRANSIPMENTS EITHER. IT’S Essentily China Shoving Its Exports Down Other Countries’ Throats. The United States Trade Data, Direct Shipments from China to the US Have Been Going Down, But China Has Been Unloading ITS Exports, In Particular, Into Southeast Asia, Because they can.
Millar Commented On China’s Dominance in the Region, Stating:
“They are push back geopolitical; they canpete with Chinese Lower Prices that Dumping their overcapacity into Southeast asia. So IT’T’T’T’THTHPOSHTING AN ECONNIC Bloc. IT MEANS, IN A WORLD IN WHICH CHINA IS TRYING TO FIND PLACES TO DUMP ITS EXPORTS, IT’S PICKING ON ITS WEAKER NEIGHBORS, AND IS Being Very Successful Right Now. ”
Beijing Targets Domestic Consumption Amid Trade Uncertainties Despite China’s Efforts to Redirect Shipments to Southeast Asia and Other Parts of the World, Economic Indicators Are Sending Mixed Signals.
Chinese Exports Surged 7.2% Year-on-Year in July, Up from 5.8% In June, While Imports Rose 4.1% (June: 1.1%). However, Recent Private Sector Pmi Data Revealed Potential Red Flags. Notably, August’s RatingDog manufacturing and services pmis showed Two Concerning Trends. Rising Input Costs and Intensifying Competition Pressured Profit Margins. FIRMS REDUCED STAFFLING LEVELS ACRIVE SECTOR TO REDUCE COSTS.
Falling Margins and Rising Unemployment Could Undermine Beijing’s Efforts to Boost Domestic Consumption. Unemployment Rose from 5% in June to 5.2% in July, with Youth Unemployment Surging to 17.8% (June: 14.5%).
Rising UNEMPLYMENT COURKLD WEIGH ON SENTIMENT AND HUSEHOLD SPEENDING. Despite Tese Headwinds, Beijing Introduced Fresh Policy Measures this Week, Aiming to Boost Consumption. Beijing reportedly launched a programs to subsidize consumer loves to boost Household Credit and Spending.
The Latest Subsidy Program Follows Several Policy Measures Targeting Consumers. Retail Sales figures for july signaled a Sharp Drop in Consumer Spending, Triggering The Latest Round of Stimulus. Retail Sales Rose 3.7% Year-on-Year in July, Slowing from 4.8% in June, Signaling Weakening Consumer Demand.
A Pickup in Demand for Consumer Credit and Household Speaking Coulding Ease of the Competition on Margins. Improving Margins May Allow Firms to Increase Staffing Levels, Potentilly Improving Sentiment.
Mainland Stock Markets Stumble Hong Kong and Mainland China-Listed Stocks Came Under Selling Pressure On Thursday, September 4. The CSI 300 and The Shanghai Composite Index Droped 2.24% and 1.71 Morning Trading.
Concerns About Margins, Weakening External Demand, and Rising Unemployment Weighed On Sentiment. Reports of China’s Financial Regulators Considering Cooling Measures for The Stock Market Aded to the Negative Mood. Policymakers Are Reportedly Considering the Removal of Short-Selling Restrictions and the Introduction of Measures to CURB SPECULATIVE TRADING.
Despite Today’s Losses, Mainland Equity Markets Hold on to to Solid YTD Gains. The CSI 300 and the Shanghai Composite Index Are Up 10.42% and 11.45%, Respectively. While the CSI 300 and Shanghai Composite Trail the Nasdaq Composite’s 11.32% Gain, The Hang Seng Index Continues to Outperform with A 24.8% Rise.
Trade News and Beijing’s Policy Measures Could Be Crucial For Market Momentum, Given The Latest Pullback.
Rising US-CHINA Trade Tensions, Weakening External Demand, and the Absense of Fresh Stimulus Could Unravel the Market Rally.