​SSS in the News | China will need to stop its internal problems in finance while the trade war goes on

Lianhe Zaobao, page 9

Assoc Prof Yip Sau Leung from NTU Economics programme explained that some people were of the view that the trade war was in fact a strategy from the United States to curb the rising power of China. In a commentary, he wrote how China must first address the problems in its financial sector to ensure it will not be defeated in the trade war with the US. A key problem is the vicious cycle of flight of capital, which resulted in an outflow of foreign reserves that impacts the value of Renminbi and causing losses in the Chinese stock market. While China is prepared to engage US to resolve the trade war, it is also preparing for the worst case scenario should US refuse to back down.