A gloomy stock market must wrestle with China’s latest taunt, in which it warned it would “fight to the end” and get the “last laugh.” | Source: Don Emmert / AFP
On Friday, China announced $75 billion in additional tariffs on American goods. Trump reacted by calling Xi an “enemy” and announcing further tariff increases of his own. He also ordered American companies to relocate their operations outside of China.
As a result, the Dow plunged 623 points. And it could get even worse next week. Late Friday evening, Trump again took to Twitter, this time threatening to invoke a national emergency to crack down on China:
For all of the Fake News Reporters that don’t have a clue as to what the law is relative to Presidential powers, China, etc., try looking at the Emergency Economic Powers Act of 1977. Case closed!
— Donald J. Trump (@realDonaldTrump) August 24, 2019
China Strikes Back, Says Beijing Will Get ‘Last Laugh’
China isn’t taking all this provocation lying down. On Saturday, a pseudonymous opinion piece in a leading state-run Chinese paper stated that:
“China’s will to defend the core interests of the country and the fundamental interests of the people is indestructible, and will not fear any challenge.”
The author continued saying that China would continue to fight for its interests until the end and that:
“History will prove that the side on the path of fairness and justice will have the last laugh.”