Chinese President Xi warned provinces, ministries to prepare for full-scale trade war

SGH Macro Advisors note to clients cited by the folks over at Zero Hedge:

• President Xi Jinping … reportedly spent over two hours talking about U.S.-China relations
• Called on all provinces and ministries to be prepared for a full-scale trade war
• China expects it is inevitable the U.S. will impose tariffs on $34 billion worth of Chinese goods on July 6
• China will respond accordingly with tariffs
• In the short term, officials expect the currency will weaken due to trade concerns
• The PBOC also will refrain from increasing holdings of U.S. Treasuries and, in fact, will seek to reduce them "appropriately