Will trade war really start? It is difficult to say “Yes” at this moment as you know that it is not the first time for the US president Donald Trump to say trade war with China.
After the ZTE issue, China’s government does not want trade war with the US and realizes that they have not yet fully prepared for the trade war. The technology industries are still relying too much on the chips from the US. And it reveals that the fastest-growing GDP of China depends on the US technology suppliers. China technology industries still remain copying instead of creating. It seems that the US find the way to negotiate with China for the big trade deficit in the past. On the other hand, the US does not want a real trade war with China as well and just treat it as a negotiation. Please note that Donald Trump is a well-known business man and know how to scare the investment markets. While the stock and commodity markets are shaking, it could be the time for buying low.