China-AmericaTrade War?

Yesterday afternoon, there was news that China was strongly protesting America's military arms sales to Taiwan.  One must wonder if perhaps China is testing President Obama's mettle, for America has had a military alliance with Taiwan for the longest time.  It was hopefully expressed that the protest will be a tempest in a teapot.

This morning however, the news became more ominous, for expatriates living in China, as it was reported that the Chinese government was putting up sanctions against American companies -- private American companies will be prohibited from making deals with the Chinese government.

At a class this morning with some students from Caterpillar, there was the temptation to ask the students if they felt personally impacted by the news.  However, many of the students probably weren't aware, it being the weekend, so it will have to be seen, in a few days time, how they feel.