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To: Kellis91789

“You can reduce regulations and taxes to zero on your own producers and still lose when another country is subsidizing their own producers.”

But as your (China’s) economy tanks, just where to the funds to subsidize their producers come from?


66 posted on 12/22/2016 10:17:35 PM PST by vette6387
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To: vette6387

Subsidies don’t need to last forever. The game is to destroy the other’s capacity to produce, corner the market, and then slowly raise prices to make back the subsidies. Meanwhile, the other party can’t afford to risk the capital to rebuild the industry because so-called “free trade” can pull the rug out at any time.

“Dumping” is usually item specific and more obvious, but “VAT credits” on all your exports is a government subsidy supporting your entire manufacturing sector in general. Many manufacturing businesses in China have never made a profit, and only exist as part of China’s goal to take over the world economy. The EU plays the same VAT credit subsidy game, while the USA does not and has huge trade deficits to show for it.


81 posted on 12/22/2016 11:08:09 PM PST by Kellis91789 (We hope for a bloodless revolution, but revolution is still the goal.)
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