China "Shocked" By Navarro Appointment, As Trump Team Proposes 10% Import Tariff

ZeroHedge.com ^ | 22 December 2016 | Tyler Durden

[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.

[Jeff Chandler]

And no, Chyna, you can’t have California.

Y no, China, no se puede tener California.

[Squantos]

Nah ..... Waltons will just pass the added costs to the walmartians . Profits will prevail.

[kingu]

Co-Author of Death By China is Greg Autry, who has been appointed to the NASA landing team.

Can’t say I’m greatly disappointed by any of Trump’s appointments (though I certainly would love to see a law banning the federal employment or appointment of any direct family member of a sitting representative or senator.)

[vette6387]

“No reason that opening up trade had to mean shipping the nation’s jobs overseas. That and illegal immigration were sellouts for big business contributions.”

I retired from the Silicon Valley about ten years ago (in the semiconductor manufacturing area). At that time the firm for which I worked was outsourcing absolutely everything it could to China. Now, I understand that the buyers who worked in my organization fly back and forth to China “managing” their vendors instead of visiting their former suppliers here. And yes, stuff is cheaper, but getting the Chinese suppliers to deliver quality material isn’t easy.

[vette6387]

“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.”

And the other “plus” for us would be to put a serious economic hurt on China. Their economy is in the crapper, and it’s my bet that we are helping them stay afloat right now. When they have to worry about how to feed their populace, they will be less of a worry to us as a military power.

[vette6387]

“You can reduce regulations and taxes to zero on your own producers and still lose when another country is subsidizing their own producers.”

But as your (China’s) economy tanks, just where to the funds to subsidize their producers come from?

[Harpo Speaks]

Yep.

[Jarhead9297]

So tell me then did tarrifs save those middle class steel and textile workers? No they did not. In fact they absolutely destroyed entire middle class cities. Springfield Ohio, Pittsburgh, Youngstown, Canton, Akron and the list goes on and on. You cannot undo history and history tells us exactly what tarrifs do....The Chinese won that round.

[cba123]

I recall several years ago, there was (another) effort at Buy American at Walmart.

That one lasted about a month, I think.

We need, nationwide, for the government to be involved (somehow) in maybe charging an import tariff on any inbound products. Anywhere. So everyone in the entire market is facing the same issues, equally, then raise US living standards through re-introducing American manufacturing.

Because it is profitable. I would put the incoming tariff however, north of 20%. Maybe 30%, or more.

That would also introduce a very good source of revenue for the government, which is now at a 20 trillion deficit, and still growing.

Just my opinion.

[arrogantsob]

Others would say that excessive speculation in the stock market along with bankruptcies of major European banks had as much to do with the collapse as taxes and tariffs.

Friedman points his figure at monetary policies and incorrect measures of the money supply which led the authorities to take the wrong actions with money policy.

A factor which obviated government policies was the international Gold Standard which prevented/restrained fiscal policy from being effective. This was done through the foreign exchange market produced gold flows.

It was a massive flustercuck in every direction.

[nathanbedford]

I tell you young man what do but you don' t do it.

… Robert E Lee at the battle of Chancellorsville.

In the adrenal rush of victory it is easy to believe that our new Paladin can rearrange the world to our liking, he can not. President Trump will find Congress recalcitrant; he certainly will find the bureaucracy subversive. John F. Kennedy once said words to the effect that as President of the United States he issues orders to the bureaucracy but nothing happens; he will find the Chinese wily, powerful and determined because they will be desperate; he will encounter an aroused consumer class resentful that their standard of living has been reduced further by a new tariff regime; he will encounter an aroused economic sector composed of those who lost their jobs when trade is reduced or eliminated.

This is not to say that the battle to protect America from Chinese mercantilism is not worth waging, it is. But it is to say that many people will be unavoidably sacrificed that others might prosper. In effect, we are not saying but we should be forthrightly saying that consumers and exporters to China, as examples, must be sacrificed for the national good, for the good of the whole economy, for the national security of the country.

In a representative democracy the people are entitled to know exactly what price must be paid for these values, they must know the cost of waging this war. It is immoral to go to war without the support of the people, without full disclosure of war aims, without an honest accounting of the cost, and without an exit strategy.

The people must understand what victory means and what the cost will be and who will bear it. Donald Trump is not Superman, the powers arrayed against him are entrenched, the support of the people is fickle, the way is not at all clear. It is wrong for us to blandly assure the people otherwise.

[Crucial]

The Hawley-Smoot Tarrif Act passed by Progressive Republicans and incurred worldwide retaliation, along with record high income taxes, 63% on the top tax bracket, raised even further by FDR, caused the Great Depression. The tariffs resulted in higher prices and a substantial decrease in trade. This resulted in a drop in GDP and job losses. Higher tax rates resulted in less investment in the economy, resulting in more job losses.

The Communists and socialists have maintained that the Great Depression resulted from speculation which ties into what you are talking about but that happened as a result of this Progressive agenda, an agenda Trump looks to be willing to embrace. What you’re espousing with tariffs is sheer madness.

[cba123]

Back then, America exported quite a lot. We imported very little.

Now the roles are COMPLETELY reversed.

[Jarhead9297]

You are right about Lincoln and how the Government raised money and if he for tarrifs if that alone is how the Government derived its operating revenues. However we know those were different times and the Government collects taxes, on top of corporate taxes, gasoline taxes, death taxes, interest earned taxes, Social Security taxes, capital gains taxes, windfall taxes, tax tax tax. Throw on top of that punishing tarrifs and businesses here that rely on that trade will go under thanks to the big steel foot of government.

Since the inception of the income tax tarrifs have not worked to save, retain or build jobs. However they have been proofed to be job killer (aka steel and textile extinction)

[Jim Robinson]

We’re going to cut those too. Cheers.

[Jarhead9297]

Dry well said sir very well said

[HerrBlucher]

Why would they launch a nuclear strike against their biggest customer who also happens to owe them $1.5 trillion?

Spite?

[Jarhead9297]

I pray we do Jim and you may be right! just hope he has a willing Congress and their feet are held to the fire should they buckle under MSM pressure.

They have no excuse now. As Obambi used Bush as his crutch and Congress used Obambi as theirs, the ball is now in their wheelhouse.

Good to see you about and Merry Christmas

[nathanbedford]

After dictating my reply I almost immediately ran across this ARTICLE which describes perhaps the most potent weapon to be fired at the Trump presidency.

[Fai Mao]

“If you go to China and visit the stores you realize how few US products make it onto the shelves.”

The exception is Buick which is actually made in Shanghai. Buick is the most popular car in the PRC. The locals hate the domestic nameplates because they’d rather not push the vehicle home.