By Martin Ji, CFA
China Has Resolve to Endure A Prolonged Trade War
Western-focused investors usually emphasize the problems China faces (of which it has plenty) to try to gauge the trajectory of the pending trade war, as well as its economic outlook. Supply chain disruption/relocation could prove to be significantly damaging to China. Also, the already high debt leverage at the local and national level hamstrings the central government's effort to use stimulus to counter the challenges from a full-blown trade war with the U.S.
However, we tend to miss other aspects of the