Dow Industrials: u.s.-China Relations and Trade Wars

dow industrials: Alibaba BABA, -1.24% fell 5% and Baidu BIDU, -0.74% lost nearly 4%. See What investors need to know about a potential White House effort to block U.S. investment in China Even though trade wars are good, and easy to win according to President Trump in March 2018, the White House now feels the need to widen the struggle with China from a dispute about traded goods and intellectual-property rights into a whole new arena involving potential capital controls, according to Market Watch. The move comes at a sensitive time for U.S.-China relations, as the two countries seek a resolution of the trade dispute in talks in Washington on Oct. 10-11, with a Chinese delegation led by Vice Premier Liu He. The news sent the U.S. benchmark S&P 500 index SPX, -1.23% and the Dow industrials DJIA, -1.28% down on Friday, with the MSCI China Index off 1.6%, and stocks closed lower for a second straight week, Chinese internet giants listed in the U.S. were hit hard. For Chinese investors Monday will be the last chance to react to the new risk before a five-day market closure until Oct. 8 to mark the 70th anniversary of the Communist Party's taking power in 1949. U.S. investment in China's domestic markets is limited, with residents holding only about 203 billion of mainland financial assets as of June, according to the U.S. Treasury, though this month China removed another hurdle to foreign investment in its stock and bond markets. On Saturday the U.S. Treasury denied there was any plan at this time to go ahead with investment restrictions, but the risk remains as two bipartisan bills have already been introduced to Congress aimed at pushing U.S.-listed Chinese companies to comply with auditing rules in the U.S. If those companies failed to submit to regulatory oversight, they would face de-listing. (news.financializer.com). As reported in the news.