View attachment 165021
MOFCOM is weighing in on the Japan issue, saying Japan cannot attempt to profit from China while hurting the feeling of the Chinese people. Best correct their action post haste.
MOFCOM might be about to play one of their big cards soon.
Their second biggest export market is China, at around 19% vs the US 21%. (
) If China enacted tariffs similar to Trump on the primary exports from Japan, namely machining tools, robotics and integrated circuits (all sectors that China is trying to develop self sufficiency in) then Japan would get tag teamed on both ends by their two largest export partners. Their only play would be to try to devalue the yen even more (lol) and result in their population being able to barely feed themselves at that point whilst getting paid in yen and depending on expensive imports of food and energy. Plus, China can just use Trump's playbook and say "Japan was taking advantage of China through trade". China may lose out on trade selling to Japan when they retaliate, but the overall impact is significantly more painful for them. Also, WTO can't do jack shit because they're paralyzed from Trump's dual attack with the blocking of judges and withholding financial contributions.
Btw, here's an article from earlier this year from a Japanese publication saying they can weather some pain from the US tariffs due to increased demand from China. Good luck with that now, lol.
Also, regarding potential use of RE restrictions on Japan. Here's a FP article all but warning China not to do it because "it will hurt China". Best way to respond to western criticism or advice? Do the complete opposite of what they say.
