Posted on 09/26/2022 6:27:28 AM PDT by hardspunned
Global financial firms, still smarting from multi-billion dollar losses in Russia, are now reassessing the risks of doing business in Greater China after an escalation of tensions over Taiwan. Lenders including Societe Generale SA, JPMorgan Chase & Co., UBS Group AG have asked their staff to review contingency plans in the past few months to manage exposures, according to people familiar with the matter. Global insurers, meanwhile, are backing away from writing new policies to cover firms investing in China and Taiwan, and costs for political risk coverage have soared more than 60% since Russia’s invasion of Ukraine. “Political risk around potential US sanctions and the likelihood that China would respond by restricting capital flow has kept risk managers busy,” said Mark Williams, a professor at Boston University. “A sanctions war would significantly increase the cost of doing business and push US banks to rethink their China strategy.”
(Excerpt) Read more at apple.news ...
Anything that starts us down the road of beginning to loosen economic ties with China is a good thing.
Screw all you Free Traitors™.
United States Imports from China was US$541.53 Billion during 2021, according to the United Nations COMTRADE database on international trade. United States Imports from China - data, historical chart and statistics - was last updated on September of 2022.
https://tradingeconomics.com/united-states/imports/china
Stopping half a trillion in imports would crater the US economy. They need to be stopped, but it has to be done carefully.
We created a monster. Think Loral when BJ was in office.
Watch as the value of Foreign Assets in China goes to Zero.
Watch as the value of Foreign Assets in China goes to Zero.
It would crater the Chinese economy NOT OURS!!!As USA ramps up production BEHAIND A WALL OF PROTECTIVE TARIFFS the US economy would take off straight up. Imports slow down the economy and reduce the buying power of the working class. Get it?
“Anything that starts us down the road of beginning to loosen economic ties with China is a good thing.”
👍
It would be very bad for the Chinese, but it would be easier for them to find alternative markets for their output than it would be for the US to rebuild its manufacturing base to produce the missing imports.
We have shipped the production systems to China, long since laid off all the skilled workers, and dismantled the factories. We would have to import new machinery from Japan and Germany to get restarted.
The European company I used to work for did just that ... they wanted to be stateside to be closer to their huge US customer base. It was a pain in the butt to move stuff and get it set up here, but they got it done.
“Taiwan is already beginning to be blocked. “
Reference or source?
We are not looking for “easy”. We are looking for long term viablity and suvivability.
No need to stop it per-se, just add a 10% additional import tax each year for the next 20 years on Chinese goods. That will allow a period of time for the supply chain to move with minimal effect on the US except moderately higher prices in the short term on largely junk items.
I agree with the long term strategy—but honesty is appropriate—and the woke US large institutions will make this ten times more difficult than it needs to be.
The US is not ready for prime time at this moment—it will take major change to get there.
That won’t bring production back to the US. Mostly it will move the outsourcing to other low wage and medium wage countries.
It’s a good plan if you are a globalist and your intent is to suck up to India, SE Asian countries, etc to incent them to join an anti-China bloc. Of course, they won’t stay bought.
It would move more back than you think. Corporate boards are chatting about doing it anyway, at least in part, even without a tariff. That said, I’d also add an environmental and wage tariff as well across the board to normalize our laws with other countries over 5 years, which would solve that issue entirely.
Horse shit. The only way to do it is to do it. If a factory can be built in 6 months in a narco state like Mexixo then it can be built in 5 in Alabama. The USA is always ready to re industrialize.
Don’t forget to use “green” energy and hire boatloads of illegal immigrants and other “special” minority groups.
Wake up—this is 2022.
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