Posted on 12/22/2016 8:12:46 PM PST by Rockitz
As the FT first reported yesetrday, in a dramatic development for Sino-US relations, Trump picked Peter Navarro, a Harvard-trained economist and one-time daytrader, to head the National Trade Council, an organization within the White House to oversee industrial policy and promote manufacturing. Navarro, a hardcore China hawk, is the author of books such as "Death by China" and "Crouching Tiger: What China’s Militarism Means for the World" has for years warned that the US is engaged in an economic war with China and should adopt a more aggressive stance, a message that the president-elect sold to voters across the US during his campaign.
In the aftermath of Navarro's appointment, many were curious to see what China's reaction would be, and according to the FT, Beijin's response has been nothing short of "shocked." To wit:
The appointment of Peter Navarro, a campaign adviser, to a formal White House post shocked Chinese officials and scholars who had hoped that Mr Trump would tone down his anti-Beijing rhetoric after assuming office.
“Chinese officials had hoped that, as a businessman, Trump would be open to negotiating deals,” said Zhu Ning, a finance professor at Tsinghua University in Beijing. “But they have been surprised by his decision to appoint such a hawk to a key post.”
Shortly after the announcement of Navarro's appointment, the US Office of the Trade Representative yesterday put added more fuel to trade tensions with Chine when it put Alibaba, China’s biggest e-commerce platform, back on its “notorious markets” blacklist of companies accused of being involved in peddling fake goods.
(Excerpt) Read more at zerohedge.com ...
And guess what!? Another market stepped in to create those products. Here’s a hint...it wasn’t a large US company that stepped in to fill the gap left with a large tarrif either. In each of the years you cite it was a liberal instituting those policies and yet we cheer for larger government. Yay for Government.
When folks realize it’s regulations and corporate taxes destroying business we’ll be better off. We cheer what history has already proven is a failure. Tarrifs destroy the middle class not enrich it. History has proven this.
But hey cheer it up
>>Tariffs and taxes caused the Great Depression. <<
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Sorry, but this is globalist propaganda.
The GD was caused by an ill-fated attempt of globalist bankers to deflate currencies to pre-WWI levels (i.e., 1913) in terms of gold. Bank lending dried up, economic activity froze up, and eventually there were massive bank failures (of smaller banks).
By the way . . . did you know that the slogan “free trade” originated in the propaganda leading up to the Opium Wars, which were used to FORCE China to continue allowing the importation of opium (then grown in India) via the British East India Company.
They better start looking up american vendors....If China throws a tantrum,Wal-Mart will need product and fast....
10% is an arbitrary and low number. We should have reciprocal tax adjustments at the border with every country.
China adds a 17% VAT to all goods imported to their country. They also have item-specific tariffs up to 100%. When they export their goods to us, they issue a VAT credit to their producers which makes Chinese made goods less expensive in America than they are in China.
The EU does the same to us.
Rather than trying to come up with a number like “10%”, we should make tariffs and credits reciprocal — we tax at the border exactly the same rate they tax our goods at their border, and we use the revenue to issue credits to our exporters in the same percentage that they do.
For China, that should mean we put a 17% tariff on their goods and issue a 17% tax credit to our exporters to China. Then do the same to counter any special tariffs or duties they have placed on our goods.
Trump and Putin are triangulating Chinese militancy by nuking up. Absolute brilliance. Nobody move — everything will be just fine.
I don’t see why, really. They could pass the 10% premium on to us customers and we’d still buy the crap and still think we were getting a good deal. Wal-Mart’s business model is to be a category-killer. When they came into towns, the small local mom-and-pop stores that couldn’t compete in categories like toys, housewares, and clothing ended up going out of business, and most of that demand was supplied by Wal-Mart. WHen they open a Supercenter with groceries, one or two local grocery stores close their doors. So now that they’d consolidated the market, Wal-Mart can pretty much charge whatever it wants to.
And it would be better for American towns to pay a little more because a tarriff is being charged on those imports that will ultimately make it more attractive to build those products in the US than to import them. Not in every case, but if we are able to reshore say 25 or 30% of the jobs that have been outsourced to Chinese companies, it would be a major uplift for thousands of US communities.
We’re not going to win ‘em all back but if we don’t start to fix this horrible trade imbalance, we’re not going to win any.
China needs us more than we need them.
No! It's like Christmas morning every day : )
You can reduce regulations and taxes to zero on your own producers and still lose when another country is subsidizing their own producers. What is your solution then ? Subsidize our own producers ? You are then a big government, globalism spewing cheerleader. Refusing to fight back when someone is beating on you does not make you “noble”, it makes you an idiot weakling.
As part of negotiations with the Chicoms, Trump should threaten to sink their islands in the East China Sea.
So you would prefer this worldwide redistribution rather than putting a stop to it?
Merry Christmas
I mean South China Sea.
If the Chinese are as smart as they think they are, they will lower their export prices by 9.1%, then pay Donald (the US Govt) the 10%, and keep prices in the stores at par. In short, just transfer a 10% cut to our treasury.
Why would they want to do this?
Because S. Korea will be happy to fill any vacuum left by China in US Markets.
Next, Donald can up the tariff to 15%, then 20%, etc. and in the meantime give massive tax cuts to US companies and individuals, especially to US manufacturers.
Eventually, American manufacturing comes roaring back and China goes into a death spiral. When they start to whine and threaten, up the tariff to 25% and watch their society go berserk to throw their commie bastards out on their asses.
Because the present arrangement for the last 20 years has been one of the United States making China rich, actually making their communist leaders rich. Americans have been propping up the commie bastards in Beijing. Now it’s time to turn the tables on them and watch their sweat shop labor throw the commies out.
For those that are smart and have the means, short Apple (AAPL) starting mid to late 2017 because China is the reason their profits are obscenely high. Even if they grumble that they ‘can consider manufacturing in the USA’, they are only blowing smoke. Without China, Apple goes belly up.
This is brilliant
I’ve been mulling an idea. What if import licenses were restricted to only 20% of the market share for every item ?
Instead of charging a tariff, the Department of Trade would auction off licenses for xBillions of dollars of an item, say TVs, that was equal to 20% of the total TV market the previous year. Let Samsung, Sony, Vizio, Sharp, Panasonic, etc. bid against each other for the right to sell into the American market. But only up to 20% of the market. The remainder has to be manufactured in America. The same sort of auctions would be done for each type of component — from capacitors to resistors to diodes to microchips — that go into making a TV, so “manufactured” doesn’t mean just “assembled” from foreign components. It would require all the subsidiary industries that support an end product be rebuilt in America.
Sorry, Jarhead, but this country lived on tariffs until the infernal income Tax came into being. Can’t say that caused any improvement. A deciding factor of Lincoln going to war with the confederacy was he couldn’t stand to lose the southern tariffs.
We don’t need China, but China needs us. We need to bring our jobs back to our country where they belong. If it takes imposing higher tariffs, so be it. We are the world’s largest consumer. They need us more than we need them. Time they learned that.
Tariffs DO NOT destroy the middle class! Tariffs protect the middle class by evening the playing field. They are used as LEVERAGE by a wise negotiator. You’re right about regulations, but dead wrong about tariffs.
If you go to China and visit the stores you realize how few US products make it onto the shelves. If they are there, they have had to pay a huge tariff and are not price competitive with other products. 10% is a good opening volley.
It’s pretty hard to have a trade war with China that’s negative to the United States when the trade balance is so one sided.
Tariffs destroyed Great Britain’s industrial base and many people are wary for that reason.
I, for one, am willing to give Trump the benefit of the doubt. No matter what else I think of him, it’s a fact that business is his wheelhouse.
China won’t need to launch nukes. Practically half their army already lives here.
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