Trade war may cost China 700,000 jobs: JP Morgan

Bloomberg

The tariff battle with the US will probably cost China 700,000 jobs, or more in the event of further escalation.
The job losses would come if the US imposes 25 percent tariffs on $200 billion in Chinese exports and China retaliates by devaluing its currency by 5 percent and adding to levies on US goods, according to economists led by Haibin Zhu at JPMorgan Chase & Co. If China doesn’t retaliate at all, 3 million people could lose their jobs, they wrote in a research note on Tuesday.
Things may get even worse: if the US imposes 25 percent tariffs on all Chinese imports and China retaliates with the levies already announced, the measures will mean 5.5 million lost jobs and 1.3 percentage points cut off gross domestic product growth.
In a worst-case scenario in which more than 5 million jobs are at risk, choosing to devalue the currency by around 12 percent in 2019 compared to 2018 would offset the effect on the GDP and narrow the net job losses to 0.9 million, according to the analysts.
However, that would lead to $332 billion in capital outflows, burning more than a tenth of the nation’s foreign exchange reserves, they calculated.

China seeks to retaliate against US
Bloomberg

China will ask the World Trade Organization (WTO) this month for permission to retaliate against the US for failure to comply with a dispute ruling that found some of its anti-dumping rules to be illegal.
On September 21, China will ask the Geneva-based organisation to sanction trade retaliation against certain US products, according to statement from the WTO. China previously claimed that it could ask the WTO to approve annual retaliatory trade measures against $8.4 billion in US goods.