Posted on 07/16/2018 2:40:11 AM PDT by cba123
BEIJING (Reuters) - China could open its economy if it so wished, European Commission President Jean-Claude Juncker said on Monday, with the European Union calling on countries to avoid a trade war even as pressure mounts on Beijing over its industrial policies.
Playing host to Juncker and European Council President Donald Tusk, Chinese Premier Li Keqiang stressed the need to uphold free trade and multilateralism as the United States and China become increasingly mired in a trade dispute, with no sign of negotiations on the horizon.
U.S. President Donald Trump has warned he may ultimately impose tariffs on more than $500 billion worth of Chinese goods - nearly the total amount of U.S. imports from China last year – to combat what the U.S says are Beijing's trade abuses.
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The EU pushing China.
First they revile him.
Next they echo him.
Here’s the thing...Trump has never said the word ‘ban’. Chinese and EU products will still flow into the US on schedule. It’s just that they will be more expensive. If you are saying 25-percent more expensive? Well, that’s the curious thing.
For the EU, selling expensive cars is important. Could Chinese make up the difference and buy expensive German cars? Not really, unless you start to see middle-class growth.
For the Chinese, is there any market in the EU that can expand and take on more Chinese products? Well....no.
They can talk all they want, but at the end of the day, they need the US market to be open, with no tariffs.
Tariffs protect US industry and raising huge amounts of revenue. On the down side, they can cause infatuation. But a deceasing trade deficit will only strengthen the USD so the effects of that inflation will be abated over time. Also, as more domestic industry comes on line, the pressure on consumer good prices sold in the USA will continue to be downward.
“For the EU, selling expensive cars is important. Could Chinese make up the difference and buy expensive German cars? “
China could use cheese, pork, wine, machine tools, and some consumer products. But, the Chinese market is finite and the Chinese want that money to stay home because they have purposely under valued their currency. Also, any job losses in China will cause unrest, which terrifies them. On top of all that, the Chinese have an I-win-you-lose philosophy.
Musk is build a a Tesla plant in China. His Cars are more expensive than most of the German Cars. So either there is a Market for them or most will be exported? Trump will have something to say if Elon slows down production in CA. by Importing Chinese built Tesla's Cars into the USA.
The EU is every bit as protectionist as China, so its like the pot calling the kettle black. The EU is less a “free trade” union than a protectionist scheme among the EU nations and excluding outsiders as much as possible, and more by product rules than tarriffs.
Here’s just one little example, for which there are hundreds of others. Parmesan cheesec CANNOT be imported to EU nations from outside the EU, if it is labeled Parmesan. Because in the EU Parmesan cheese can only come from the region of Italy known for making Parmesan cheese. Anyhing from anywhere in the world cannot “pretend” to be Parmesan and must be labeled with some other name.
On top of that, countries that make trade deals with the EU must agree to enforce such rules on themselves and on imports to them as well. So if the U.S. had a trade deal with the EU, cheese makers here would have to quit calling any cheese “Parmesan” and all Parmesan cheese would have to come from Italy.
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