A trade war would benefit no one but would be particularly bad for China as opposed to US. So the order of magnitude is much higher for China. So it is not in China’s interest to respond aggressively to the US, Paul Kitney, Chief Equity Strategist - Asia Pacific at Daiwa Capital Markets told CNBC-TV18.
President Donald Trump targets China with up to USD 60 billion in Chinese import. The new measures are designed to penalize China for trade practices that the Trump administration says involve stealing American companies' intellectual property. In an interview to CNBC-TV18, Paul Kitney, Chief Equity Strategist - Asia Pacific at Daiwa Capital Markets discussed all the developments overnight and its impact.
A trade war would benefit no one but would be particularly bad for China as opposed to US. So the order of magnitude is much higher for China. So it is not in China’s interest to respond aggressively to the US, he said.
Those economies that depend much more on trade rather than their domestic economies will be more exposed from an economic perspective, he added.
Near-term this will affect the overall market sentiment but I do think that those particular economies would be more exposed if this bout of trade protectionism does extend, said Kitney.
We are overweight China, India, Korea and Hong Kong, he further mentioned.