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The Chinese economy suffocates under Trump tariffs


Added 07-18-19 06:35:02pm EST - “You wouldn't know it if you read the mainstream business news, but the Chinese economy is in real trouble.” - Washingtontimes.com

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Posted By TheNewsCommenter: From Washingtontimes.com: “Trump’s squeeze play suffocates China’s economy”. Below is an excerpt from the article.

You wouldn’t know it if you read the mainstream business news, but the Chinese economy is in real trouble.

Goldman Sachs recently reported that capital flight from the Middle Kingdom is ramping up once again, at a 10-month high in June with $20 billion in outflows as Chinese savers move assets in earnest (mainly using cryptocurrencies) away from Beijing’s control.

The phenomenon is similar to executives of a troubled company selling stock before the public grasps a negative business trend. It’s the canary in the coal mine of bad things to come.

Chinese manufacturing has dipped sharply in recent months. The Trump tariffs are hurting. For instance, Apple announced recently it is moving a large percentage of production out of China to elsewhere in Southeast Asia — to such jurisdictions as Vietnam because the risk of price increases in the Chinese market has become just too great to not diversify.

It’s not just Apple by the way. Dell, HP and Amazon are moving production facilities offshore from China as well.

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