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China’s trade retaliation is all bark, no bite: Weekend Edition

Bloomberg Opinion Today
Bloomberg

China Is Out of Economic Ammo Against the U.S. — Noah Smith

The Chinese government has issued vague but stern-sounding warnings that it will retaliate for a bill passed by Congress that would require the White House to protect human rights and ensure the territory's autonomy. But China's options for economic retaliation are limited. And most of these options have already been exercised amid President Donald Trump's trade war.

China's most obvious method of retaliation would be to stop buying American goods. But China has already imposed tariffs on $135 billion worth of products. Sales to China from all over the U.S. have plunged.

The agricultural industry has been hit especially hard. Farm bankruptcies are up 24% this year, and a report by the American Farm Bureau Federation finds that almost 40% of farmers' income this year will come either from insurance payouts or government bailouts.

This is an economic catastrophe for many farmers and a headache for many other exporters. But the damage has already been done.

Read the whole thing.

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This is the Weekend Edition of Bloomberg Opinion Today, a roundup of the 10 most popular stories Bloomberg Opinion published this week, based on web readership.

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