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Monday, August 5, 2019

China has suspended US agricultural purchases and depreciated its yuan.

https://www.thestreet.com/investing/stocks/dow-futures-dive-as-china-retaliates-on-trade-yuan-falls-to-decade-low-v-dollar-15044374?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

China has not retaliated with its own tariffs yet but suspended the US agricultural purchases.  China doesn't want to show hand its tariff card yet.  This will create more uncertainty in the stock market because investors don't want to catch a falling knife.

We had already stated that China was no longer interested in US agricultural purchases in our previous post.

http://sg-stock.blogspot.com/2019/08/trump-is-in-trouble-because-china-is-no.html

China had stipulated its tough stance on the wall during the US-China trade talk in Shanghai but the US team didn't get it.

http://sg-stock.blogspot.com/2019/08/the-us-trade-talk-team-didnt-get.html

The US doesn't understand that the US tariffs don't impact China's economy much nowadays and China has learnt how to cope with the tariffs already.  Therefore, additional tariffs won't force China to bend over.

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