Replies to post #13489 on The Rising Influence of Rising Affluence

[DewDiligence]

China makes it harder for multinationals to move money:

http://www.wsj.com/articles/foreign-companies-face-new-clampdown-for-getting-money-out-of-china-1480604271

In recent days, according to bankers and officials familiar with the situation, China’s foreign-exchange regulator has instructed banks to sharply limit how much companies move out of the country and into their other operations around the world. Until this week, it was possible for big companies to “sweep” $50 million worth of yuan or dollars in or out of China with minimal documentation. Now, these people say, the cap is the equivalent of $5 million, a pittance for the largest corporations.

Is this a preemptive negotiating ploy?

Among the companies mentioned in the article: AAPL, GLW, DD, NIKE, MDT (surprisingly, no pharma companies).

[DewDiligence]

The “right” kind of trade war with China:

http://www.wsj.com/articles/as-china-pivots-trump-risks-fighting-an-old-war-1482833142

China isn’t the Dickensian sweatshop portrayed in “Death by China.” Rather, it’s a key engine of global growth whose middle classes and businesses increasingly demand high-tech products and sophisticated services that Western industrial economies are so adept at supplying.

In the long run, the solution is to insist on more open Chinese markets, not to close American ones.

[DewDiligence]

Trump, Xi not so different on trade policy (op-ed from today’s WSJ):

http://www.wsj.com/articles/on-globalization-china-and-the-u-s-are-closer-than-they-appear-1485531032