Redwood: The implications of Trump's trade attack on China

'Above-average'

President Donald Trump has decided to make China his first target in his trade war.

He has accused the country of stealing US intellectual property, has sought better access for US companies to the market, and complained about the limitations placed on US investors setting up businesses there. He is imposing some tariffs, banning trade in some high-tech products, and demanding fairer terms of trade.  China is busily tidying up the balance sheets of overextended state banks, and urging local government to rein in excessive debt. Meanwhile, the monetary authorities try to keep some balance, relaxing reserve requirements and making liquidity available to markets from...