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Old 06-30-2018, 09:26 AM
8,279 posts, read 3,454,476 times
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Originally Posted by artillery77 View Post
Trump's a bully that's too easily charmed....but I don't mind him trying. To be honest the Chinese belt initiative was pretty clearly aimed at the heart of the US economy. With the crackdown, the Chinese money coming into Silicon Valley has definitely slowed a bit. The US loses in a trade war, but China loses more.

The reality is the world will play to the US tune, because there isn't another country on the planet that can allow a funds deficit to run the way the US has. Not anywhere close. You want to sell to the world's shopper, you play buy our rules.

China deserved to get slapped. I wish it had been smarter. No doubt the Xi and the commies will remember this longer than our feckless political imagination, but it was time. China will back down because frankly, they'll run out of imports to tax much faster than we will. Don't want our soybeans...fine, go buy Brazil's....but then realize there isn't enough without US beans so you're just artificially killing your own food producers who are now at a disadvantage to importers in other countries.

To me the biggest problem is not doing a better job of containing this to countries that are actual threats. First rule of bullying is to get someone singled out....you don't pick on everyone at the same time.
What would you say the implications are of say in a another generation or two and China is 3X the importer of the the USA?
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Old 06-30-2018, 08:18 PM
Location: Silicon Valley
2,747 posts, read 1,209,866 times
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Originally Posted by Hoonose View Post
What would you say the implications are of say in a another generation or two and China is 3X the importer of the the USA?
That would balance the trade with the US. Imports and Exports would be about equal. In that aspect, that would be the ideal situation.

Free trade works best when you have company level market participants in a bigger area all competing to make the best product for the best price. It rewards those companies that do the best with an even bigger area to sell too, and hopefully that in turn reinforces economies of scale.

Where China is wrecking this is their NGOs have unlimited access to loans that in truth never need to be paid back. This makes relative economic conditions to do business in China and export elsewhere more favorable. The oversupply of steel is an example. Another aspect is that goods that would have demand in China are stalled at the border until arrangements are made to produce in China with a partner, or until red tape is drawn up that makes a different product more favorable to an end consumer. Something as benign as credit card transactions is an example.

When it's truly companies against companies, that will be fair trade. China has revolutionized faster than either it, or any other country has ever done in the past 30 years. They're the biggest economy now, and it's time that they cut out the unfair practices.

It's not just China. They are just the most egregious.
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