In what appears to dismiss President Trump's claims that a deal is a lot closer than you think, Bloomberg reports that the White House is said to support a review of investment limits for China.
Among the options the Trump administration is considering:
delisting Chinese companies from U.S. stock exchanges and
limiting Americans’ exposure to the Chinese market through government pension funds.
Exact mechanisms for how to do so have not yet been worked out and any plan is subject to approval by President Donald Trump, who has given the green light to the discussion, according to one person close to the deliberations.
Bloomberg adds that there is reportedly no timeline for a Chinese capital restriction action.
The market did not like that...
Yuan is also tumbling...
Alibaba shares plunged...
But there are others...
Trade deal odds tumble...
Cue - headline touting how great the deal talks are going...
But don't hold your breath, as Bloomberg concludes, Trump would also have the support of hardline advocates, like Bannon, his former chief strategist, and hedge fund manager Kyle Bass. Both are leading the Committee on the Present Danger: China. It's a group that advocates for total economic decoupling as a way to secure America’s national security.
In a recent “threat briefing” - which is how the group titles its meetings - Bannon said American financing have helped spur China’s economic ambitions and technological advances.
“The Frankenstein monster that we have to destroy is created by the West. It’s created by our capital,” Bannon said at the Sept. 12 briefing.
Or is that more like shooting oneself in the foot?