Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Red China: Chinese think tank warns US it will emerge as loser in trade war
The Telegraph ^ | 9/14/2010 | Ambrose Evans-Pritchard

Posted on 09/14/2010 1:44:53 PM PDT by bruinbirdman

A State Council think-tank in China has warned Washington that the US will come off worst in a trade war if it imposes sanctions against Beijing over the two nations' currency spat.

Ding Yifan, a policy guru at the Development Research Centre, said China could respond by selling holdings of US debt, estimated at over $1.5 trillion (£963bn). This would trigger a rise in US interest rates. His comments at a forum in Beijing follow a string of remarks by Chinese officials questioning US credit-worthiness and the reliability of the dollar.

China's authorities seem split over how to respond to moves on Capitol Hill for legislation to punish Beijing for holding down the yuan. The central bank has ruled out use of its "nuclear weapon", insisting that it would not exploit its $2.45 trillion of foreign reserves for political purposes. "The US Treasury market is a very important market for China," it said.

However, the mood is hardening on both sides of the Pacific. The dispute risks escalating if China's trade surplus with the US climbs further and more US jobs are lost. US Treasury Secretary Tim Geithner, who has taken a softly-softly line in the past, said on Friday that China had done "very little" to correct the undervaluation of the yuan since ending the dollar peg in June.

Mr Ding reflects thinking among some in the Poltiburo, who seem convinced that the US is in decline and that China's rise as an exporter of goods and capital give it the upper hand.

"They are utterly wrong," said Gabriel Stein from Lombard Street Research. "The lesson of the 1930s is that surplus countries with structurally weak domestic demand come off worst in a trade war."

He described the implicit threat to sell Treasuries as "empty

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Front Page News; News/Current Events
KEYWORDS: china; goldbugs; mao; maozedong; marxwouldbeproud; obamao
Navigation: use the links below to view more comments.
first 1-2021-4041-6061-80 ... 121-127 next last

1 posted on 09/14/2010 1:44:55 PM PDT by bruinbirdman
[ Post Reply | Private Reply | View Replies]

To: Toddsterpatriot; Mase; expat_panama

ping


2 posted on 09/14/2010 1:51:41 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman
We don't need sanctions. All we need is to do is answer what's more expensive.

1. Shipping jobs overseas, paying for unemployment benefits, and losing the revenues paid when the unemployed were tax payers, or

2. Paying $0.50 more for a US made pen instead of a foreign made pen.

3 posted on 09/14/2010 1:52:14 PM PDT by TwelveOfTwenty (Compassionate Conservatism? Promoting self reliance is compassionate. Promoting dependency is not.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

China holds our debt. China has excess capital to buy from other trading partners.

China has a government that is much more unified than our own. The Chinese are all pulling in the same direction, more or less. The US has a political class that is in it for themselves. In fact, many in the US government have been bought by the Chinese. The Chinese have more to say about US political moves than the average American.

The Chinese standard of living is low, and the people are used to dealing with whatever the goverment hands them.

The US standard of living is relatively high, even though it’s on the decline. People in the US feel entitled. A trade war that crashed the economy would cause widespread panic.

It sort of seems to me that the Chinese, if they were willing to deal with the worldwide economic mess, could crush the US.


4 posted on 09/14/2010 1:54:15 PM PDT by brownsfan (D - swift death of the republic, R - lingering death for the republic.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

The think tank is shallow.


5 posted on 09/14/2010 1:54:17 PM PDT by Colvin (Proud Owner '66 Binder PU, '66 Binder Travelall,)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TwelveOfTwenty

Saddly, most Americans don’t think that deeply, and Walmart does not have a lot of American made goods. I say, bring on the Trade War.


6 posted on 09/14/2010 1:55:44 PM PDT by Colvin (Proud Owner '66 Binder PU, '66 Binder Travelall,)
[ Post Reply | Private Reply | To 3 | View Replies]

To: TwelveOfTwenty
2. Paying $0.50 more for a US made pen instead of a foreign made pen.

If you want to cut the tax rate on the US based pen maker to 0%, I'd be all for it. Giving the government more control over trade, not so much.

7 posted on 09/14/2010 1:56:04 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Colvin
Walmart does not have a lot of American made goods.

How much do they have, as a percentage of sales?

8 posted on 09/14/2010 1:57:04 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: bruinbirdman
China's authorities seem split over how to respond to moves on Capitol Hill for legislation to punish Beijing for holding down the yuan. The central bank has ruled out use of its "nuclear weapon", insisting that it would not exploit its $2.45 trillion of foreign reserves for political purposes.

But it sure makes a good club to hold over our government's head to ensure that our government jumps everytime China yells, "frog".

9 posted on 09/14/2010 1:57:44 PM PDT by OB1kNOb (Contrary to popular belief, America is separated by class.... the political class and all others.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman
Mr. Ding is right as long as Obama is occupying the White House. Obama will do whatever is most damaging to the US.
10 posted on 09/14/2010 2:00:30 PM PDT by Truth29
[ Post Reply | Private Reply | To 1 | View Replies]

To: OB1kNOb
But it sure makes a good club to hold over our government's head to ensure that our government jumps everytime China yells, "frog".

What else is China going to do with all those dollars they earn from the massive current account deficit they have with us?

Nuclear weapon?

LOL!

11 posted on 09/14/2010 2:06:53 PM PDT by Mase (Save me from the people who would save me from myself!)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Toddsterpatriot
If you want to cut the tax rate on the US based pen maker to 0%, I'd be all for it.

Me too, but I don't need a $0.50 price cut or any other kind of government intervention to know I'd be saving money over the long haul by buying the US made pen.

12 posted on 09/14/2010 2:07:01 PM PDT by TwelveOfTwenty (Compassionate Conservatism? Promoting self reliance is compassionate. Promoting dependency is not.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: Truth29

Mr. Ding is right as long as Obama is occupying the White House. Obama will do whatever is most damaging to the US.


0bama might sell our Pacific Fleet, including all of our Nimitz Class Aircraft Carriers to the Chinese. /No sarcasm.


13 posted on 09/14/2010 2:09:25 PM PDT by unkus
[ Post Reply | Private Reply | To 10 | View Replies]

To: TwelveOfTwenty
1. Shipping jobs overseas, paying for unemployment benefits, and losing the revenues paid when the unemployed were tax payers, or

2. Paying $0.50 more for a US made pen instead of a foreign made pen, [and]

3. Shipping jobs overseas, paying more for unemployment benefits, and losing the revenues paid when the unemployed were tax payers because we made pens more expensive.

Who has any faith the government will sort things out?
14 posted on 09/14/2010 2:10:05 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 3 | View Replies]

To: Colvin
I say, bring on the Trade War.

Absolutely. Higher prices, fewer jobs and a more influential government!!

It's the American way.

15 posted on 09/14/2010 2:14:20 PM PDT by Mase (Save me from the people who would save me from myself!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Mase
Folks will be screaming like, well, Democrats if the jobs are lost in their Congressional District. If it happens to someone elsewhere, not so much.
16 posted on 09/14/2010 2:17:30 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 15 | View Replies]

To: bruinbirdman

Lets see a few billion people pissed at their leader, how long before he’s dead meat.


17 posted on 09/14/2010 2:18:16 PM PDT by org.whodat
[ Post Reply | Private Reply | To 1 | View Replies]

To: Colvin
I would say that the only American made product is in the grocery department and dog and cat food. But they were importing the hell out of dog and cat food until it started killing peoples pets. LOL
18 posted on 09/14/2010 2:20:43 PM PDT by org.whodat
[ Post Reply | Private Reply | To 6 | View Replies]

To: org.whodat

I’m looking at a “Grown in U.S.A.” label on the tomatoes I purchased just today. But of course, they could have been assembled from foreign parts.


19 posted on 09/14/2010 2:24:14 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 18 | View Replies]

To: bruinbirdman

The Free Trader Globalists will side with the Communist Chinese on this one...sure bet.


20 posted on 09/14/2010 2:24:29 PM PDT by UCFRoadWarrior (They don't let you build churches in Mecca)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-6061-80 ... 121-127 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson