Tensions escalated between the United States and China when Trump wrote in a tweet on May 5 that he would increase tariffs on $200 billion Chinese goods to 25 percent from 10 percent. Trump accused Beijing of backtracking on its commitment to deliver structural reforms. The dispute revealed the vulnerability of China’s stock market, with the Shanghai Stock Exchange Composite Index falling nearly 6 percent on May 6, the day after Trump’s tweet. The stocks haven’t recovered since then. The total outflow from Chinese stocks by nonresidents since tensions escalated reached $6.2 billion, according to IIF, which has tracked capital...