The two moves by China in response to President Trump’s recent threat to levy 10% tariffs on List 4 imports was widely seen as a signal that the Chinese are prepared to wage a long-term trade war, posing new risks to the global economy and rattling world stock markets. On Monday, China suspended all purchases of U.S. agricultural products, dealing a blow to a key Trump constituency, and also allowed the renminbi to rise above 7 to the US$ which was seen as a key psychological barrier.

Numerous analysts pointed to the “weaponization” of the currency as a serious escalation in ... Log in to view full article.