China is losing the trade war and it will get much worse

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The AFR puts brave face on for China today:

China has urged its citizens not to panic as its trade war with the United States escalates, declaring the world’s second-biggest economy can withstand a battle and that it is not afraid to “fight back”.

In a notable shift from its earlier, softer stance towards Donald Trump’s brinkmanship as trade talks stalled, China’s state-owned newspaper took a nationalistic tone on Tuesday as investors braced for heavy losses on the nation’s stockmarkets.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.