Cutting through an overload of information to get to the heart of the story, this is the point.
In response to earlier U.S. tariffs announced last week, China retaliated with its own set of measures,
including 34 percent on all U.S. exports to China, also rare earth export controls and market stability actions.
Now, the country has also deployed its economic heavyweights, such as the central banks,
such as sovereign wealth funds and financial regulators, into the fray to keep the markets stable.
So, what other tools does China have up its sleeves,
and how will China respond to Trump's latest escalation, and what chances are there now of a negotiated settlement?
Welcome to this edition of The Point with me, Lucien, coming to you from Beijing.
I'm pleased to be joined here in the studio by Victor Gao, chair professor at Suto University from Bangkok by Carl Fe,
professor of strategy at the BI Norwegian Business School in Oslo,
and from Brisbane by Warwick Powell, a junk professor at Queensland University of Technology.
Victor, tell us about the kind of messages or what I'm reading from the relative calm in the Chinese market.
What forces are in play here?
How are investors feeling about the American tariffs?
First of all,
what the United States government under President Trump is doing against China in terms of the maximum amount of tariff is unprecedented,
and I think it breaks record in recent decades.
And I think the Chinese government has decided to stand firm, to defend its legitimate interests,
and had already announced the proportional mirror image tariff of 34%.
And I think the Chinese nation or the Chinese corporates are fully supportive of this decision.