Possibly, but the greatest fear of China is a decoupling from the US and a rearranging of supply chains outside of China. The US only exports about $150 billion to China while importing about $500 billion from China.
By comparison, we export $280 billion to Canada and import $300 billion. We export $250 billion to Mexico and import $315 billion. The new USMCA is far more impactful than the China deal for use. It involves $1.15 trillion worth of trade activity.
Also, our total trade activity with the EU is greater than it is with China. The US has the world's must lucrative consumer market. We import $2.3 trillion of goods and services annually and export $1.5 trillion. China needs us far more than we need them. Trump is the first President that understands that we have all the leverage.
“The US has the world’s must lucrative consumer market.”
As you say, Trump more than any other leader we have had understands this and knows exactly how to use it to our advantage and he has NO reservations in using this great economic power.
He used it in dealing with Mexico, Guatemala and the EU Nations etc. Faced with a curtailment of their exports to us they fell in line almost immediately. The US is the worlds leading consuming Nation and we import over 33% of the entire worlds exports.
Exactly right. It takes a businessman to understand leverage and is what he is being impeached for using leverage to find what and how much corruption in Ukraine.
Yep! "Rearranging Supply Chains" is the new "watchphrase." Already, President Trump's tariffs on Chinese exports have caused $65- $70 BILLION of the horrendous U.S.-China trade deficit to disappear. Some of that huge sum ended up in the U.S., as some companies began producing goods here rather than in Communist China.
Some ended up in trading partners friendlier to us than Red China. It's a win-win either way. "Rearranging Supply Chains" takes time, and the MSM is clueless (as usual). The Hoover Institute has written an outstanding article on "Rearranging Supply Chains." Some excerpts:
"The U.S.-China trade war has had a huge impact on the supply chains in China, accelerating their relocation that had already begun due to rising taxes, costs of labor, and other input factors. The exodus reported in the past year is only the tip of the iceberg, as more serious effects will not become apparent immediately. A major effect of the relocation on China is job losses, which may reach as many as 5 million in the coming years. Given the unlikeliness of a quick end to the trade war and the reluctance of the Chinese Communist Party (CCP) to make structural changes, the long-term prospects for supply chains in China are not promising because not only will existing firms gradually reduce their exposure to political and economic uncertainties, but also potential newcomers are likely to avoid China. Although the CCP rolled out some policies that may help alleviate the shock, it has yet to come up with specific policies to effectively address the problem."