Worries about the U.S.-China trade war are overdone because the impact on China will not be as immediate and challenging as many investors expect, according to the chief executive of a widely followed investment group.
"It takes a long time to move trade flows. China has industries that are going to be there for a long time, they're not easily movable," said Jonathan Slone, CEO of brokerage and investment group CLSA.
He pointed to the case of Asia's second-largest economy as an example of trade's tendency to stay in established routes: "Everybody thought, Japan, they're going to lose their industrial base when the yen went to 110 (to the dollar) ... that hasn't happened."
Fears of trade tensions escalating rose on Friday when U.S. President Donald Trump warned he was ready to impose tariffs on another $267 billion of Chinese goods, on top of the $200 billion in duties that he had already threatened to slap on China.
Talks last month between the two economic powerhouses aimed at easing tensions, but they did not see major breakthroughs. Trump said last week he was not prepared to make a deal with China "that they'd like to make." Still, he added, his administration will "continue to talk to China."