| Tariffs will undoubtedly hurt both the U.S. and China. The question seems to be who'll hurt more. That's a tricky, if not impossible, calculation thanks to the complexity of global supply chains and the interconnectedness of both nations. But as rhetoric heats up, it's also a question that's come increasingly to the fore. For China, the worry is that protracted tariffs will prompt companies to move production – and jobs – to other countries. Some have already started to do just that. And while China has plenty of policy steps it can take to cushion such a blow, it must also be careful that doing so doesn't exacerbate the country's significant debt problem. For the U.S., the prospect of American companies and farmers losing access to fast-growing Chinese markets is an alarming one. More distressing is the "nuclear option," used to describe the unlikely scenario in which China retaliates by selling its holdings of U.S. Treasuries.  The outlook for more pain has sent markets reeling. Weaker than expected economic data for both the U.S. and China this week adds to the gloom.
Is that enough to convince Washington and Beijing that they should make the concessions needed to seal a deal? Probably not. Manufacturing in China has weakened but continues to expand. U.S. jobs data was better than expected for April. A nationalistic turn in public discourse will also make concessions more difficult. It appears the most-definitive thing that can be said right now about this trade war is we should all expect more pain. Tech War Huawei is one company facing more hurt. President Donald Trump signed an executive order this week that would restrict it, along fellow Chinese network gear maker ZTE, from selling equipment in the American market. And perhaps more troubling, the U.S. Department of Commerce added Huawei to a blacklist that could forbid American companies from doing business with it. If that limits Huawei's ability to buy U.S. technology, the implications could be substantial. Air Ways Boeing is another. The company's shares fell to a four-month low after the editor of a nationalist-leaning Chinese newspaper suggested Beijing could curtail purchases of Boeing aircraft in retaliation for American tariffs. It also emerged this week that Chinese airlines were thinking about banding together to seek compensation from Boeing for disruption caused by the grounding of its 737 Max planes. Beef Trade But not all trade is in the doldrums. Australian beef exports to China could hit a new record this year. That's because African swine fever is decimating China's supply of pork, boosting prices and sparking demand for shipments of meat from abroad. It's also not a situation that looks like it'll be changing soon, with the director of the China Animal Agriculture Association describing it as a national crisis this week that needs more government assistance.  Chinese Quants The trade war has had a huge impact on stock markets globally, but fund managers in China must also contend with another unpredictable force. Retail investors account for more than 80% of local trading, resulting in market moves that can be hard to explain. A growing group of quants, however, are betting they can gauge retail sentiment accurately enough to make it an advantage. Their methods include scouring for mentions of companies in local media and online chat rooms. Peaceful Gaming And finally, it turns out that peaceful gaming isn't as popular as the gory sort. Tencent earlier this month introduced Game For Peace, a Battle Royale-style shooter that's family friendly. That means no blood. Plus, when avatars are killed, they wave goodbye instead of dying in a more sensational fashion. Reviews from players have been less than friendly.  | 
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