Chinese Media Have Issued A Severe Warning Against Donald Trump

As of 12:34 am EDT, the Dow Jones Industrial Average (DJIA) was down 305.03 points (1.2 percent) at 2542.74 and sets the Dow down for the first monthly loss of the year.

Dow is set to announce its first monthly loss in 2019. | Source: Yahoo finance. 
The S & P 500 was better off, dropping 25.18 points (0.9 percent) to 2,777.31 while the Nasdaq Composite Index was 7536.03, down 61.67 points (0.94 percent). 
Overnight, Asian markets were mixed as the Shanghai index in China rose 1.6 per cent, partly on the back of rare earth stocks and Japan’s Nikkei fell three times the 1.2 per cent loss.

China’s threat: “Do not say I did not warn you”

The People’s Daily of China published an editorial using the words “a threat bearing enormous historical weight” in China:

Do not say I have not warn you

In the same editorial, China warned that it could restrict exports of “rare earth”, which contain biogas to US defense and defense industries, which could damage every corner of the US economy, from oil refineries to wind turbines to jet engines. 
This term may seem relatively common in English, but China’s choice of words is something that is considered and achievable.

Those who know the Chinese diplomatic language know the further effects of this phrase

This word has been used only a few times by the Chinese media and always comes in the context of major political threats or military importance. 
In 1962, it was pronounced before China went to war with India and again in 1979 before the violence in Vietnam. In other words, it is a big threat.

The intensity of the words is ringing in the ears of Dow traders.

The Dow is at risk as China threatens to supply “rare soils” , the strongest move to date in the China-US trade war


 rare earth contains 17 essential elements for smartphones, fighter jets, batteries and electric vehicles. China accounts for 70 percent of total rare earth production and 40 percent of total reserves. 
According to local reports, President Xi Jinping said he is seriously considering the imposition of export restrictions.

“Based on what I know, China is seriously considering restricting rare earth exports to the United States and China may also take other countermeasures in the future.”

This move could stifle the US technology industry, let alone the defense companies.

The Dow is poised for the worst month of 2019

The news comes as the Dow Jones Industrial Average (DJIA) is considering its first monthly loss in 2019, down more than 3.6 percent this month. The Dow appears to be ready to break a fourth profit chain. 
China’s rhetoric toward the United States hasbecome more angry in recent weeks. Yesterday, a Chinese government media publication criticized the “arrogant” demands of Donald Trump. 
Traders are likely to view the clash as a negative sign after hopes for a quick trade agreement with China helped the Dow rally near record highs. In fact, it could take months (or years, according to some analysts) before we see the tension.

Please note, that is not a bit of financial advice, nor the WhaleToBe team’s view

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