The Chinese are very well known to be virtually intractable and to measure things in decades while Americans generally want near instant gratification.
If Trump thinks he can out sumo-wrestle the Chinese on this, I fear he is sadly mistaken. China will simply wait, let both economies go through whatever “short-term” (to them, ages to us) chaos that may ensue, and hope/work to ensure he does not win re-election.
I’m all for fixing the big imbalance with China, but do not think POTUS is going about this the right way - and in the meantime, the economy (the one thing that’s Trump’s biggest Ace) is at huge risk. Not the smartest approach, IMHO..
They have more to lose economy-wise than we do.
Their military is dependent upon it..........
Fine points. But when the economy is doing well, that’s the time to make a bold move and use your stick, Otherwise you are at their mercy. China has a coming crisis with aging, so time isn’t completely on their side.
I agree totally. The folks who compare this to Reagan and the arms race that destroyed the SU are mistaken if they apply that policy here. The arms race in no way harmed the US economy. In some ways it benefitted it. China has taken the Trade War to the next level and I agree that we in no way have the patience to suffer an economic downturn.
As long as China continues to offset tariffs with currency deviation we are in a Mexican standoff.
What other options are available? What would you do differently?
Sadly, I have to agree with you. Trump is not playing a very smart hand at this. This is a long term problem that took decades to develop to this point just like being over weight. It will not be solved in weeks by starvation and that tactic risks sickness of the economy just as it would for a person.
Someone asked how anyone was getting hammered in the markets. Here is how, the markets have plunged repetitively in days on trade fears and clawed their way back to where they were before the plunge. This last move was the first in two years of real gain instead of just clawing back. Retirees are harvesting bone when this happens and savers are treading water just like we did for years under barky.
Some sage will come along on this board soon and say how stupid this discussion is since, “The market is not the economy.” Absurd. They probably also believe that diversity is our strength.
Trump is playing a short term slugfest strategy in a very very long term game. One team will be exhausted before they even get a chance to win and that is not the chicoms. They can require that their people suffer and probably survive. We can’t.
Reagan breaking the Soviet Union in an arms race took longer than he was in office. The damage to US was no apparent and so we went along with it. The Soviet were on thin ice already. It takes a lot of time to swing an economy. The Chicoms are not the Soviet. It will take a lot longer to break them than two terms and a little. Trump should know this. He should also know whatever he does will be rapidly undone when the rats take over and it will have been all for ZiP.
When you enthusiastically lead a headlong charge be well advised to keep looking around to see if your troops are still with you.
There is not another politician (and I hate to call Trump a politician) who has any interest in fixing the imbalance of trade with China...If Trump's way doesn't work, then it's not going to happen anyway...
So you're against the freedom for Americans to purchase what they choose?