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President of China, Xi Jinping.
However, not only will be there uncertainty surrounding Trump, Xi has basically been named “emperor of China” with his recent re-election as president in addition to the removal of term limits on the office, Rutledge said Friday on “Power Lunch.”
that will means Xi will be “in a very politically vulnerable spot where he has to show testosterone to his local audience. in addition to so, they’re going to come back hard,” said Rutledge, who was one of the principal architects of the Reagan economic plan.
Trump targeted China on Thursday, when he signed an executive memo that will slapped tariffs on up to $60 billion in Chinese imports.
The brand new measures are meant to penalize China for trade practices that will the Trump administration says involve stealing U.S. companies’ intellectual property.
Rutledge, right now chief investment officer at Safanad in addition to a CNBC economics contributor, said China’s initial response was seemingly moderate because This specific doesn’t know what some other actions Trump will be going to take.
“We don’t see a very firm response here because they’re not sure what they’re dealing with yet they cannot afford to not deal with This specific, he said.
Things like capital goods, technology in addition to agriculture are vulnerable, he noted.
“There’s big, big dollars there in addition to we don’t know when This specific all stops.”
Commerce Secretary Wilbur Ross told “Power Lunch” on Thursday that will he expects some “ultimate retaliation” by China yet “I don’t think This specific’s going to be the end of the earth.”
— CNBC’s Kevin Breuninger contributed to This specific report.