Posted on 05/14/2019 6:40:22 PM PDT by SeekAndFind
There are five things everyone should know about our trade war with China:
1. President Trump and his advisors will not back down. China’s expectation that the White House would give ground on issues already decided was profoundly mistaken.
Their hope that Trump would prioritize his political desire for a buoyant stock market and booming economy over re-engineering our trade relationship with China was an error.
2. China’s senior official in the talks, Vice Premier Liu He, suggested that the changes his team demanded in terms already agreed to were “very natural.”
He further said that the issues at stake were “matters of principle” that were unacceptable to Beijing. So, not outlawing intellectual property theft, apparently, is a “matter of principle” for the Chinese.
3. China wants the U.S. to trust they will abide by any agreement struck between the two sides. That the arrangement should be codified through legislation was apparently viewed as awkward politically for Chinese President Xi Jinping.
Here’s the problem: We do not and should not trust Beijing. We should not, in particular, trust President Xi, who openly lied to President Obama about, for instance, his country’s activities and intentions in the South China Sea.
4. The Chinese have retaliated in kind to the increase from 10 percent to 25 percent in tariffs placed on their exports coming into the U.S. They boosted duties on $60 billion of U.S. exports from 5 percent and 10 percent to 20 percent and 25 percent, respectively.
However, the impact on the U.S. will be far less than the hit to China, especially if President Trump follows through on the threat of hikes on an additional $300 billion of Chinese exports. Exports account for roughly 20 percent of China’s economy compared to only 12 percent of U.S. GDP.
(Excerpt) Read more at thehill.com ...
China holds the world record for mass murder. I don’t want their ‘trust’.
Free Tibet
Why sell our security for cheap junk. We can buy elsewhere
Next, initiate plans to initiate tariffs to 50%, on everything from China.
One month from now.
Then a month later, raise them to 100%. At 90 days, 200%.
Finally, after four months, 500%.
Chuck Fina.
It failed because the Chinese went back on their agreement.
Start negotating individual agreements with countries in the area that require that nation or their citizens or US citizens to own the business...then announce 50% tariffs on all Chinese business at the end of the year and openly encourage businesses to move out of China.
very powerful and accurate article about chinese trade situation. Thanks for posting it.
Communists are completely untrustworthy.
We should behave as if China isn’t even there.
Trump is the only one willing to spend the political capitol to put the necessary screws to China. The next president, Republican or Democrat, will just drop the tariffs. China just has to wait until Trump is out of office.
I think American companies with plants in China to produce goods to be sold back into the US market see the handwriting on the wall with this last move to increase the tariff to 25% and squeeze their margins to the point they need to consider moving out of China to avoid the tariff. Trump is biding his time to watch China suffer as plants take flight. Just a matter of time before China folds and all this garbage about China saving face will be proven to be just that, garbage.
We don’t need China, less than 1% of our exports go there, hardly anything to really get upset about. Meanwhile the Chinese steal our intellectual property and we get nothing in return except cheap goods that are not as good as when they were produced elsewhere.
On another level, China’s hubris reminds me of the late 80’s, when everyone thought Japan was the corporate ideal and the Japanese were buying up everything at inflated prices around the world...I have a feeling this will end up the same way for China, except it will be far harder landing for them.
President Trump seems to be our first leader who understands what a bunch of backstabbing crooks the Chicoms are. About time!
“Trump is the only one willing to spend the political capitol to put the necessary screws to China. The next president, Republican or Democrat, will just drop the tariffs. China just has to wait until Trump is out of office.”
They don’t have that kind of time.
I do think Trump’s ego is removing any possibility of a way for the Chinese to “save face”, which is very important to them. If we do “win”, I hope he tempers the braggadocio.
China’s Commie Party cannot withstand an economic downturn. Their people will rise up as one and break their skulls. Could be very bloody for them if they don’t capitulate to Trump.
looks like China and NK are playing from the same hand - believing that time and ambition will make the USA back down. Both have underestimated the US and both are wrong. Especially with China having problems with their ‘belt and road’ ambitions.
Related article here:
https://thehill.com/opinion/international/443511-why-xi-jinping-reneged-on-the-trade-deal-with-trump
Note how that piece keeps coming back to issues such as IP theft, and Chinese unwillingness to accept “norms” in those areas.
All:
Question: What other countries have major problems with their trade deficit with China? And can we do more to get them on board to squeeze China NOW? I know the Euros are supportive on the IP theft issue, but they typically do not have major trade deficit issues with China. Germany actually runs a surplus.
Question: How can President Trump better get word out about relief to US entities hit by the retaliatory Chinese tariffs? And should he propose a hefty new income tax reduction or deduction to be paid for by US tariff revenue?
Question: Can and should President Trump publicly frame the issues such as steps China needs to take to seriously reduce IP theft, and so on, not as US demands, but as worldwide norms and expectations of countries that are responsible and / or strong members of the global trade community? Basically, challenge them: “China, are you a strong, responsible country? Then the world expects you to behave as one. Are you weak? Then perhaps we can work out something to help you. (This throws “Loss of face” right into their own sorry laps.)
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