U.S., China Dealing in Trade Posturing Tactics, Alpine Macro's Wang Says

The transcript discusses potential Chinese retaliatory measures against the US, focusing on economic actions like dumping US Treasurys and restricting rare earth exports. It examines the impact on companies like Apple, highlighting the intertwined economic dependencies between the US and China. The discussion also touches on nationalistic pressures in both countries and the slim chances of a near-term resolution, emphasizing the need for negotiation despite current tensions.

What are some of the extreme measures China might consider in response to actions against Huawei?

• Dumping US Treasuries and restricting rare earth exports

• Increasing tariffs on US goods

• Increasing tourism to the US

• Banning US movies in China

Why might China be hesitant to retaliate against Apple?

• Apple is not popular in China

• Apple does not produce any products in China

• Apple creates jobs and contributes to the Chinese economy

• Apple is a small player in the global market

What is the main reason the speaker believes China will not take extreme measures against Apple?

• Apple is a major contributor to the Chinese economy

• China wants to maintain a good relationship with the US

• Apple has no significant presence in China

• China is not capable of taking such measures

What is the current state of negotiations between the US and China according to the speaker?

• Negotiations are progressing smoothly

• Both countries have stopped negotiating

• There is a high chance of reaching a deal soon

• The odds of making a deal in the near term are slim

How does the speaker describe the economic relationship between the US and China?

• Highly intertwined and interdependent

• Only beneficial to the US

• Non-existent

• Completely independent