Ex-PBOC's Zhou Sees Sentiment Risk From China-U.S. Trade War

  • President Trump is preparing to increase tariffs on China
  • Zhou comments in an interview with Bloomberg in Cernobbio
Zhou Xiaochuan speaks with Bloomberg’s Francine Lacqua at the Ambrosetti Forum.Source: Bloomberg)
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China could be hit by a change in market sentiment in the event of an all-out trade war with the U.S. even if the direct impact on the economy isn’t that large, according to former central bank governor Zhou Xiaochuan.

Zhou, who retired just this year, said the U.S. tariffs on China -- when looked at in light of the size of the economy -- are “not very significant.” Nevertheless, the pass-through to confidence is a potential channel for disruption.