Expect much confrontation between China and the United States until they reach an agreement on trade, noted investor Mark Mobius told CNBC on Tuesday.
“(China is) going to be tough to begin with and they are not going to give in easily, because you’re talking about (a $)300 million trade deficit in China’s favor, so they are not going to give up that easily,” the founding partner at Mobius Capital Partners told CNBC’s “Squawk Box Europe.”
“But I would say, maybe after six months they will come to some agreement and that will be done. But in the meantime, there will a lot of blood on the streets,” he added.
Beijing and Washington have engaged in a tit-for-tat trade battle since near the start of the year, when the U.S. imposed tariffs on laundry machines and solar panels coming from China.
The U.S. blames China for its trade deficit figures and has repeatedly slapped new levies on Chinese goods. Beijing has so far retaliated to each set of tariffs.
via CNBC 
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