Posted on 08/02/2019 10:55:54 AM PDT by Innovative
As China considers ways to retaliate against President Trump’s mounting tariffs, it has increasingly acknowledged that it must first address its main obstacle to punching back: its own slumping economy.
Chinese officials have vowed to respond with measures of their own if Mr. Trump follows through on his threat to put 10 percent tariffs on $300 billion in Chinese imports a year. If Mr. Trump enacts the tariffs next month, as he said he would do on Thursday, the costs would rise for nearly everything China ships to the United States, from shoes to car parts to the latest gadgets.
On Friday, China’s Ministry of Commerce, which is heavily involved in the country’s trade policy, said it would “take necessary counter measures to resolutely defend the core interests of the country and the fundamental interests of the people.”
(Excerpt) Read more at nytimes.com ...
Sounds like this is exactly a good time to try to negotiate with China.
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Trump is in a great negotiating position because he put himself there.
Too bad the NYTimes article is all about the things China can do to retaliate instead of praising Trump.
They’re going to be forced into a fair deal with the US. How horrible for them.
Got themselves nicely overextended on our money.
Time to yank the leash.
Trump is not looking for a deal. He’s looking to fundamentally change the supply chain the world over. The initial tariffs were to get us used to the tariff regime.
There won’t be a deal. There will be new players within the supply chain.
As China weakens economically, watch for neocons & globalists to whine about the good old days of Bush & Clinton.
Sounds like agood time for China to negociate with President Trump.
Bend the knee China. Bend the knee.
And Trump is wrestling with Xi Jinping with one arm tied behind his back, just to make it fair. < /sarcasm >
Trump would NEVER go into a negotiation with “one arm tied behind his back”, as he goes in to WIN, not just letting the other guy “gain parity” in interests of “helping”.
The Chinese have never played “fair” in this game.
“” “” The Chinese have never played “fair” in this game.”” “”
Nobody ever played “fair” in this game.
Agree!
I wish president Trump would announce in a speech that his administration is committed to completely de-coupling the US economy from China's.
That would stir up a nest!!
All talk on China’s part. They have zero ammunition economically, and the additional tariffs are driving ever more companies out of China.
NOBODY liked having a plant in China. The idea was it was the only way to access their market, which they then took steps and erected barriers such that those markets were inaccessible.
“Too bad the NYTimes article is all about the things China can do to retaliate instead of praising Trump.”
Exactly what was/is expected from the NYSlimes trash/filth/garbage/crap/sh*t/junk.
The usual scare mongers are claiming Trump will send the economy into recession.
Thanks Innovative.
“Trump is not looking for a deal. He’s looking to fundamentally change the supply chain the world over.”
We have a Winner!
The President always knew who he was dealing with - fundamentally bad actors, who had to be defeated, rather than negotiated with. The few families who control the oppressive police state in communist China have been comfortable with their longstanding brutal practices of carving up political dissidents and members of religious sects (like Falun Gong) to sell their organs, as an example of their real character.
They are mafia crime lords of the worst type. There is no room among them for any soft-hearted Deng XiaoPing types anymore, as the rise of Xi highlights.
All the negotiation was just hand holding to calm people’s (the markets’) fears, while the change is managed. The preparation is done, and the main levers are now being moved - 2019 is the year. The main tariffs started around June 1st (for the third quarter), this new package starts on September 1st (Q4), and I expect them to bump up to 25% on January 1st. Then it will be 25% across the board. That will do the job, and it is now underway in earnest.
Now it is a new ball game. As one of the Chinese guys quoted in the article pointed out, the aim of the Chinese Government is no longer to try to prevent the tariffs from being implemented, they now have to focus on adapting to the new normal. These will be new waters for communist China. Many alive today there have never known anything but economic boom times. Now we must be prepared to manage the potential of them lashing out in their pain (like we are currently doing with Iran).
Much of communist China’s growth was built on lies and cheating - printing money, fraudulent accounting (the norm there), theft of IP, trade manipulation, and mountain upon mountain of debt - much of which will never be paid back, like their mal-invested infrastructure investments, that were just built to keep economic activity up the growth targets for the next quarter, and now decaying unused.
They are primed for some epic economic crises - Stock market crash, housing market crash, bank failures, capital flight, currency crash - you name it.
In my view, President Trump had a clear view of the problem, what was needed, and the timeframes involved, before he took office. Businesses would need warning to get of China, and then they would need convincing that they had too. Then they need time to scout locations and set up elsewhere. That had to be done during the first term, because of the risk of losing in 2020. So now the tariffs will do it.
So what happens next? My guess is that the President knows what is likely to happen financially in China over the next few years as well. My guess is that the real show starts next year, but the communist Government is going to have to start imposing some more extreme measures in the second half of this year.
The panda mask is going to come off, and they will likely start with some more openly hostile and dictatorial actions.
“All talk on China’s part. They have zero ammunition economically”
They definitely can’t match us tariff for tariff.
There are many other ways they could lash out - even militarily. Maybe some North Korean attacks, or South China Sea aggression. Maybe they will start taking hostages, on trumped up criminal or spying charges. They are bound to try something, when the heat gets high (which these tariffs seem to have already baked into the cake).
They have to managed somehow to dissuade their most hostile (non-economic) counterstrikes and attempts to coerce. Something valuable that they could lose, or some very painful further punishment, must be held in reserve.
Trump should raise tariffs to 25% after another month. Lets see if China still wants to play games then.
Trump has China’s balls in a vice and he’s slowly squeezing.
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