https://www.cnbc.com/2018/10/12/trade-war-china-record-surplus-with-the-us-in-september-beijing-says.html anybody see this? does anybody care? or will we just continue to bust Trumps balls because he seems to win a lot
"If Trump imposes tariffs on an additional $267 billion of Chinese imports into his country, the Asian
powerhouse's exposure to the U.S. market would only be 2 percent of its total industrial production,
according to a study by Zhang.
"So China's "focus now is to try to retain supply chains that support the rest of the world" that make
up 25 percent of the country's total industrial production, Zhang told CNBC, citing the example of
Apple iPhones exported to Europe."
yes "try" ...just like china has "tried" to hang the US for decades
While there is dependency between the two of us, China needs the US more than the US needs China. It's good to finally have a leader who understands that and is willing to use that leverage to our advantage.
Why we have so many citizens who seem to want to put other countries interests ahead of our own will remain a mystery to me.
"So China's "focus now is to try to retain supply chains that support the rest of the world" that make
up 25 percent of the country's total industrial production
The 2% only applies to goods shipped directly to the US - right? What about the squeeze on China due to the new trade agreement with Mexico and Canada?
While the new agreement maintains the integrity of the North American market, it dramatically changes the rules and tilts the playing field in favor of the United States. In particular, changes in provisions regarding the percentage of North American content required in vehicles imported under the agreement, a mandate for huge increases in minimum wages in Mexico and support for labor unions in Mexico mean that an already resurging American manufacturing base is set to expand even more rapidly.
The new agreement should be good for all three countries - the US, Mexico, and Canada - assuming Canada takes advantage of it. Canada is already planning to put tariffs on Chinese steel and aluminum.
Growth in China's manufacturing sector stalled this September, with export orders falling faster than they have in two years. The Caixin/ Markit Manufacturing Purchasing Managers' Index (PMI) for September fell more than expected to 50.0 from 50.6 in August. The index measures the rate of expansion or contraction in an economy, and the neutral 50-mark divides expansion from contraction. What was once the world's fastest growing economy, destined to overtake the United States at any moment, is now poised, not simply to cool off, but to begin to shrink in size. New export orders from Chinese firms, the all-important indicator of what the future portends, are now shrinking across the board.
He goes on to say:
China's currency is in free fall. China's foreign exchange reserves fell more than expected in September 2018 to a 14-month low as the yuan weakened against the dollar.
China's stock market is crashing. It has lost $2 trillion in value already this year. China, which overtook Japan as the second largest stock market in the world only a few years ago, has now officially fallen behind Japan. The losses show no signs of abating.
The article is worth reading. He goes on to detail why he titled the article "China Has Already Lost This War." He says:
an impending flood of Chinese bankruptcies and telling the Chinese judiciary to prepare in advance.
He talks about the lack of alternatives for China:
China, which lives or dies based on exports cannot lose access to the American market and even begin to replace those sales elsewhere. There are on the other hand an almost endless number of other locations other than China, including the United States, to which manufacturers can move their factories and shift production. China was already seeing the beginnings of this shift before the trade war began. The confrontation with the United States simply intensified the trend.
His last paragraph is worth considering:
The ultimate reckoning will come inside China however. Ever since China opened its economy to the world it has had an implicit bargain with its citizens. They would accept continued authoritarian rule by the Communist Party in exchange for a rising standard of living and greater economic opportunity. The Communist Party is about to be forced to admit that it can no longer keep its end of that bargain. What the people do next remains to be seen.
Now, if all a person reads or watches is the MSM, they will never see this side of the story. The MSM is a part of the Deep State, and they want Donald Trump gone at any cost.
"The Communist Party is about to be forced to admit that it can no longer keep its end of that bargain. What the people do next remains to be seen."
Leftist governments, you know, like the ones the leftists in this country want, have a proud old tradition for dealing with internal dissent. Tiananmen Square could end up looking like a rowdy tea party.
This could be the first test for China, couldn't it.
I expect you are right cfdr. and isn't it odd a man like Trump, never considered much of a conservative, comes along at this particular time and fills this particular purpose....among the 239 other accomplisments this last 20 months
I care. Things are working the same way as in 1979 after the Russian grain Embargo when afterwards Russia found new sources for their grain. Reagan called it "hitting the Nation in the Breadbasket". Hard lessons that were forgotten or ignored by the egotistical amateur tyrant in the White House.
http://www.politico.com/story/2018/08/11/farmers-china-soy-bean-market-share-734773
More on Trump's ineptitude.
http://qz.com/1422225/the-us-china-trade-war-has-made-chinas-trade-surplus-bigger-than-ever/
Yes, cliff, I know you think that we should have just meekly gone along with China's plan to overtake us - both economically and militarily. They were so confident in their plan that they didn't even bother to keep it a secret. MIC2025's aim is clear - to anyone who actually thinks about it.
And, with farming, yes, again I know what you are thinking. It isn't even good short term thinking, as China is already investing in agriculture in South America and Africa. As long as we give them several hundred billion dollars every year to invest, do you really think they won't continue to invest the money we give them to compete with us? Our only hope is one of two things - a trade agreement where they want to buy more of our goods, or, no agreement where they are starved for capital to invest in competing with us around the world.
We know exactly where the road leads if we had done nothing. That was not a valid choice for the businessman - and American - Donald Trump.
Sorry, but the "stick your head in the sand and pretend everything will turn out ok" plan was not something that this president considered a reasonable thing to do. Why should we continue to give them the money to make it possible for them to overtake us?
The USSR? Oh yeah, I'd almost forgotten they existed. Ended up "in the ash heap of history" quite some time ago as I recall.
Cooler heads must prevail. Don the Con's continued bashing must stop.
Yeah, let's get the WTO and the UN too. They'll fix it right.. LOL
yes the UN...they have always treated America fairly and honestly....I bet if we run to them they will have a solution that is really in our best interests, kind of just like Obama and company have treated the US if you think about it for about 2 seconds