Talking about the Boao Forum, there is one interesting point to note. On Sunday, head of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences Zhang Yuyan said there is no intention of allowing trade dispute with the US to spill over to finance. Zhang emphasized that there should be a “firewall between trade problems and financial ones”. And, the chance of China selling its massive US Treasury holdings due to a trade war is “very small”.
Zhang added that “maybe one or two days before the actual implementation (of the tariffs), the US side will gain its reason and sense.” And, “there are many cases of compromises being reached at the last minute.”
