XeroHedge bullet-pointing Xi's options:
China has three options:
— zerohedge (@zerohedge) April 4, 2025
1. Concede defeat to whatever terms Trump demands
2. Devalue the yuan by 20-40%
3. Unleash biggest fiscal stimulus in its history (talking $2-3 trillion) which will push its debt off the chart
That was an embed in yesterday's ZH post "Trump Says China "Played It Wrong" On Retaliatory Tariffs — Now Beijing Faces Three Options"
The leadership of both the government and the party are very reluctant to pursue options 1 and 2 unless absolutely necessary to halt a depression in China. That leaves option number 3.
And the strategy for that is to frontrun those sectors most likely to benefit.
As we mentioned in October 2024:
Get as close to that fire hose of liquidity as you can. Become a member of the party, buddy up to the politburo, whatever it takes....
This is applied Cantillon.
