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Trump Threat Unlikely to Derail China Financial-Industry Opening

  • Gains from higher foreign investment would outweigh trade spat
  • Opening of Chinese financial sector is ‘baked in the cake’
Bloomberg business news

China Has Leverage to Retaliate Against U.S. Steel Tariffs

China will probably stay true to its pledge to further open its financial industry to foreign companies, even as the Trump administration ratchets up the threat of a trade war.

The U.S. government is said to be considering clamping down on Chinese investments and imposing levies on a range of imports to punish Beijing for alleged theft of intellectual property. Would China retaliate by going back on its vow -- made by a trusted aide of President Xi Jinping before a global audience at Davos -- to remove foreign ownership limits on banks and allow overseas firms to take majority stakes in local securities firms?