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China Can't Win a Trade War Against the U.S. for One Simple Reason | Opinion
Newsweek ^ | Apr 07, 2025 | Gordon G. Chang

Posted on 04/09/2025 12:55:41 PM PDT by daniel1212

..With these three rounds of additional tariffs and other measures, the effective U.S. rate on Chinese goods is about 65 percent. If he goes ahead with the 50 percent levy, the rate hits 115 percent.

China this year added retaliatory tariffs of 10 percent and 15 percent on certain American products...

Xi, despite best advice from around the world, has continually rejected consumption as the basis of the Chinese economy. ..

Xi Jinping certainly does not believe in empowering citizens. Moreover, as Zongyuan Zoe Liu writing in Foreign Affairs notes, the Communist Party leadership also abhors consumer spending, believing "consumption is an individualistic distraction that threatens to divert resources away from China's core economic strength: its industrial base."

By bolstering manufacturing, China's leader is pleasing core Communist Party constituencies, helping struggling state banks, and building China's war machine..

Xi dared a tariff-loving Trump to impose tariffs on China. The trouble for the Chinese leader, however, is that the objective factors show that China cannot win a trade war.

For one thing, China's economy is less than two-thirds the size of the American one. Last year, the U.S. produced about $29.2 trillion in gross domestic product. China's National Bureau of Statistics reported $18.8 trillion, a number almost certainly inflated.

Moreover, China is the trade-surplus economy. America's merchandise trade deficit with China hit $295.4 billion last year. That deficit is 5.8 percent greater than 2023's.

Trade-surplus countries have no ammunition in trade wars...

How long can Xi hold out? To stay in the game, he has to spend...In 2018, to keep access to the American market, the Chinese central government and Chinese factories absorbed somewhere between 75 percent to 81 percent of the cost of Trump's 25 percent tariffs

The views expressed in this article are the writer's own.

(Excerpt) Read more at newsweek.com ...


TOPICS: Business/Economy; Food; Health/Medicine; History
KEYWORDS: china; economy; gordonchange; shopping; traderegulations; tradewar; trumptariffs
Excerpts of article for discussion, regarding a nation that abhors Biblical faith and thus must bring all into subjection. But when any nation fights against God, as the enlightened and more accountable West does, then it commits suicide.
1 posted on 04/09/2025 12:55:41 PM PDT by daniel1212
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To: daniel1212

To be clear, this is an op-ed, published on newsweak.

Oddly, a quick web search reveals that they have been regularly publishing pieces critical and negative of chyna.

And, ironically, newsweak is now ranked ‘right-center’ of media bias.

What happened?


2 posted on 04/09/2025 1:15:04 PM PDT by logi_cal869 (-cynicus the "concern troll" a/o 10/03/2018 /!i!! &@$%&*(@ -)
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To: logi_cal869

Gordon Chang is the best expert on China in the US.


3 posted on 04/09/2025 1:22:42 PM PDT by Fledermaus ("It turns out all we really needed was a new President!")
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To: logi_cal869
And, ironically, newsweak is now ranked ‘right-center’ of media bias.

It dares to try to be fair and balanced,

4 posted on 04/09/2025 1:32:49 PM PDT by daniel1212 (Turn 2 the Lord Jesus who saves damned+destitute sinners on His acct, believe, b baptized+follow HIM)
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To: daniel1212

There is not enough demand anywhere in the world to replace what the US buys from China.

Manufacturing and their experimental capitalism allowed China to do the one thing that communism and central planning had not: feed all the rural poor and start to create a middle class.

Cycles repeat. FAFO, Chairman Xi.


5 posted on 04/09/2025 1:39:52 PM PDT by bigbob (Yes. We ARE going back!)
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To: gundog; Larry Lucido; Kenny Bania

(Gordon Chang is the best expert on China in the US)

I ALWAYS go with Donna Chang.

Some girl from New Jersey.


6 posted on 04/09/2025 2:17:38 PM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: SaveFerris

You on the chang gang, too?


7 posted on 04/09/2025 2:20:23 PM PDT by Sirius Lee ("Never argue with a fool, onlookers may not be able to tell the difference.”)
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To: Sirius Lee

It’s Changstein, actually.....😄😃😂🤪


8 posted on 04/09/2025 2:24:10 PM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: SaveFerris

Nice!


9 posted on 04/09/2025 2:24:36 PM PDT by Sirius Lee ("Never argue with a fool, onlookers may not be able to tell the difference.”)
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To: Sirius Lee

It’s really getting ridicuRous!!!

The Rines are crossed?


10 posted on 04/09/2025 2:26:52 PM PDT by SaveFerris (Luke 17:28 ... as it was in the Days of Lot; They did Eat, They Drank, They Bought, They Sold ......)
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To: daniel1212

He is right. For all the knashing of teeth, China needs us far more than we need them. Everyone assumes it is the other way around.

China’s whole economy is shipping stuff to the US. No one can fill even 1/3 of that void. The longer they try to save face, the more pain they will endure.


11 posted on 04/09/2025 2:34:22 PM PDT by packrat35 (Pureblood! No clot shot for me!)
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To: Fledermaus

Yes, he does appear to be.

I just don’t understand when newsweak jumped right and began publishing such. Or why.


12 posted on 04/09/2025 2:55:15 PM PDT by logi_cal869 (-cynicus the "concern troll" a/o 10/03/2018 /!i!! &@$%&*(@ -)
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To: daniel1212

Trump is going to revoke the Student Visa’s next. This is going to get real fun. When the affulent Chicom’s can’t send their children to college to pop anchor babies, China will emplode.

Trump has to decide if Xi is worth keeping in charge of China. Right now things are dicy in Chicom land with the Red leadership. Purges are about to happen.

Once everyone angling for higher office has pulled the trigger in China, someone is gonna be out of a job. If that is Xi which is highly likely, then the next man up will need to resolve US trade relations immediatley or suffer a second round of musical Chi-com-airs.


13 posted on 04/09/2025 3:29:13 PM PDT by Jumper
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To: SaveFerris

....from LonGisland


14 posted on 04/09/2025 5:17:48 PM PDT by beethovenfan (The REAL Great Reset will be when Jesus returns. )
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To: Jumper
Right now things are dicy in Chicom land with the Red leadership. Purges are about to happen.

They could count the cost of invading Taiwan as being worth it. Russia, Iran and N. Korea helping is asked to. Prepper threads would see thousands again, if we even have Internet. But churches will come back, and hopefully the US would seek the Lord of the Bible, and find Him. Not that catastrophe should be necessary.

15 posted on 04/09/2025 5:59:37 PM PDT by daniel1212 (Turn 2 the Lord Jesus who saves damned+destitute sinners on His acct, believe, b baptized+follow HIM)
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To: daniel1212

Nvidia was the big prize, and the owner moved it to AZ. Soon the chips tech will be gone and essentially they lost even if they take it. After HK, Beijing screwed themselves.


16 posted on 04/09/2025 6:18:31 PM PDT by Jumper
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