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 ...
Subsidies don’t need to last forever. The game is to destroy the other’s capacity to produce, corner the market, and then slowly raise prices to make back the subsidies. Meanwhile, the other party can’t afford to risk the capital to rebuild the industry because so-called “free trade” can pull the rug out at any time.
“Dumping” is usually item specific and more obvious, but “VAT credits” on all your exports is a government subsidy supporting your entire manufacturing sector in general. Many manufacturing businesses in China have never made a profit, and only exist as part of China’s goal to take over the world economy. The EU plays the same VAT credit subsidy game, while the USA does not and has huge trade deficits to show for it.
If anybody moves. Everybody dies.
Hell, Trump should open up an air base and Marine Corp training center in Taiwan and claim it’s because of Chinese actions in sabre rattling and enabling NK. If they make threats, offer to repudiate all debt held by them. Their economy would implode
Peter Navarro tried three times to get elected in San Diego throughout the 90s: once for mayor, once for Congress running as a DEMOCRAT and once for City Council and each time the voters sent him packing back to Irvine.
I am not a fan of this pick but at least Trump has his token Democrat appointee now.
I have no idea how populism will play out in the new presidency. We had high hopes for Arnold in CA and he caved for fear he wouldn't be loved any more. I pray Trump will find his way and America wins. I sat out the primary system but Trump was interesting to me during his prior election cycle. As a past Perry supporter, I hope he does well at DOE.
I vividly recall them, too.
One commercial spot-lighted some towns in north Alabama.
The very area where Henry Ford wanted to build a manufacturing base
(“Rush for Muscle Shoals”) unlike any other place in the US.
Kinda ironic.
Correct. Spent 23 years there. The obvious exception is U.S. grown ginseng, for some reason. Perhaps due to the cultural demand for the product, the Chinese have kept tariffs low on this product. Don't know. But it is extremely popular and, I am told, more potent than Asian-grown varieties.
You may pay more for American made goods, but most of them are much higher quality than the junk China makes, including its planned obsolescence.
“Tariffs and taxes caused the Great Depression. “
Wrong.
L
Good. Screw them.
We should also charge them a premium to be educated in our universities. We dish out a lot of free money to chinese graduate students. How much do you think china spends on foreign graduates, assuming there are people who bother studying in china...?
You hit the nail. China has been dumping their goods on us for a very long time. All of it is inferior quality, and some of it like foodstuffs downright dangerous.
Yeah that happens a lot around here.
It is kind of like some of these campaign promises that will not come to fruition that non Trump supporters were shouted down about.
We will see because personally I hope that I am wrong and promises like, Hillary and her ilk being prosecuted, border(s) secured, illegals deported, no more muslims into our country, military made stronger, and jobs created come true.
>Tariffs and taxes caused the Great Depression. Tread lightly Trump.
Nope. A huge debt bubble followed by FDR’s socialism caused the Great Depression. The only people who bring up tariffs are lying free traders who grasp at anything to keep their failing ship afloat. We now have a 100+ year record of free vs protected trade and in almost every case free trade has made common people poorer.
But yes, the price shock is something we need to be sensitive to.
I raise your 10% to a 35% tariff of China. Historically that is more effective.
China quality is poor, while hazardous to your pets.
Let freedom ring. Let billionaire commie generals suck for their tyranny.
LOWER DOMESTIC TAXES ON YOU
A 10% China tariff is 10% less Obamacare tax some Republicans want to keep. See the tariff is already working as it REDUCES pressure on domestic taxing of native citizens.
PRIVATE MONOPOLY BANK caused GREAT DEPRESSION
Tariffs existed fine for 150 years BEFORE the Great Depression.
You have been drinking too much pop econ koolaid of Walter Williams & Thomas Sowell who represent foreign interests. No two people have done more damage by selling their Big Myth.
Question for the class: What significant law was passed prior to the Great Depression??
The answer rhymes with Federal Reserve lying bank.
The execs at Walmart could start at the ‘Made in America’ section of their website.
China has both an import duty (typically 10%) and VAT tax (typically 17%).
If China is shocked, it’s because she ain’t been paying attention...
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