a) Onshore would interpret this that China not caving & preparing for worst case scenario so bearish;
b) Chinese listed firms are very domestic & only 10% of earnings are abroad so valuation impact minute;
c) Not everyone loses
a) Chinese firms in sectors like semi-conductor rejoicing that they now have that large market to themselves - YIPPIE!
b) Non-Chinese firms excited that they don't have Chinese competition (5G anyone)
c) Risk-free assets excited too!
Also, decided to not raise tariffs w/ Japan during talks.
Meaning, US trying to appease allies.