No one thought that after the high-level exchanges between China and the United States, there would be a sudden escalation of the Sino-US trade war. Many self-proclaimed private economists have taken it lightly, but China's Shanghai and Shenzhen stock markets and the renminbi have shown anomalies.
On May 14, the U.S. Department of Commerce abruptly announced additional tariffs on $18 billion of Chinese exports, some as much as four times. Many self-media and folk scholars believe that after all, it is only 18 billion US dollars of goods, which is a fraction of the total trade between China and the United States, which is as high as hundreds of billions of US dollars. However, the financial market is the least daring, especially the A-shares that fall endlessly at a small matter. Sure enough, the next day, the stock markets in Shanghai and Shenzhen fell sharply after hitting new highs. The renminbi rose unexpectedly. The reaction of financial markets is still a better illustration of the impact of the escalation of the U.S. trade war on China's economy.
In any case, any signs of escalation of the US-China trade war will not be conducive to the current recovery of China's economy. The strength of the renminbi exchange rate has given us hope for economic recovery.