Chinese Economics Thread

plawolf

plawolf

Lieutenant General
cbl21 said:
ASEAN+EU+Japan+South Korea+Africa are far bigger export markets. the US makes up only 20% of Chinese exports anyhow.
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Not to mention the fact China is actively creating brand new markets with its BRI.

Chinese industrial strategy should be to keep hold of manufacturing in key strategic fields until automation has advanced enough to take over from low skilled human manual labour. After which point China will be able to remain fully competitive in those key manufacturing fields while also moving up the value chain and raising wages/living standards and shifting towards adding consumption based economic activity as an additional engine for economic growth rather that follow western models of abandoning manufacturing and shifting primarily to consumption.
 
O

OppositeDay

Senior Member
Registered Member
KYli said:
The US only requires reasonable suspicion of the use of forced labor(XJ cotton) to detain and withhold your products. That means most of the Chinese exporters would have their goods withhold at the ports til they provide evidence that they didn't use any cotton from XJ. Companies would be assumed of being guilty and would have the burden to prove their innocence.

Most major international companies such as Walmart would ask their suppliers to ensure no cotton from XJ and would hire third party auditors to ensure that the whole supply chain is clean. Basically, the US government outsources compliance and enforcement to companies who import the goods and fines and penalize extensively to intimidate companies by withholding goods at ports to ensure compliance.
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Isn't the U.S. also a major exporter of cotton? You know the pima stuff. Maybe China should ban the sales of U.S. cotton products to Chinese consumers (but allow them to be imported for export orders).
 
K

KYli

Brigadier
OppositeDay said:
Isn't the U.S. also a major exporter of cotton? You know the pima stuff. Maybe China should ban the sales of U.S. cotton products to Chinese consumers (but allow them to be imported for export orders).
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Before the phase 1 agreement, China has imposed 25% tariff on American cotton and caused the price of the US cotton to decrease. Many American farmers lose money on planting cotton. Not sure if China is willing to retaliate since the election is just less than 2 months away.
 
D

Deleted member 15887

Guest
plawolf said:
Not to mention the fact China is actively creating brand new markets with its BRI.

Chinese industrial strategy should be to keep hold of manufacturing in key strategic fields until automation has advanced enough to take over from low skilled human manual labour. After which point China will be able to remain fully competitive in those key manufacturing fields while also moving up the value chain and raising wages/living standards and shifting towards adding consumption based economic activity as an additional engine for economic growth rather that follow western models of abandoning manufacturing and shifting primarily to consumption.
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I do hope Xi and his cabinet of economists and policymakers realize this and account for this idea in the new dual circulation strategy.
 
AssassinsMace

AssassinsMace

Lieutenant General
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This is an example how US corporations will skirt around the US's trade war with China. China is still a great place to outsource for US companies. Teslas can be the same price as in China and the US but they make more profit from the ones made in China. I'm sure Trump if he wins a second term will try to prevent that from happening. Can he tax cars that don't touch the US at all? Just like he wrongfully thought the US made billions in tariffs on Singles Day in China? I'm sure he can punish US corporations in some way but then those companies will soon not be US companies. It will be the end of the US because it will no longer be capitalism.

Biden is talking about a 10% tax on any US company that outsources and then tries to sell it in the US. In other words a 10% tariff without the bull. They're saying Biden is talking about China without saying it. Now will that be on top of what the US already has on China because of Trump? Good luck with that since the media is reporting that Biden will most likely keep Trump's tariffs on China. The news is reporting now how Trump trade war is a failure in assessing his running for a second term. Most likely it means he's planning to retract Trump's tariffs on the most part because they ain't working now and everyone except Trump say the Americans consumer pays the tariff so why add 10% on top of it. Trump could've just said it was a tax on imports but he wanted to send a message to China to which China had to retaliate. I think the world would've been a much more calmer place if Trump said it was a tax on Americans companies that import.
 
C

caudaceus

Senior Member
Registered Member
AssassinsMace said:
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This is an example how US corporations will skirt around the US's trade war with China. China is still a great place to outsource for US companies. Teslas can be the same price as in China and the US but they make more profit from the ones made in China. I'm sure Trump if he wins a second term will try to prevent that from happening. Can he tax cars that don't touch the US at all? Just like he wrongfully thought the US made billions in tariffs on Singles Day in China? I'm sure he can punish US corporations in some way but then those companies will soon not be US companies. It will be the end of the US because it will no longer be capitalism.

Biden is talking about a 10% tax on any US company that outsources and then tries to sell it in the US. In other words a 10% tariff without the bull. They're saying Biden is talking about China without saying it. Now will that be on top of what the US already has on China because of Trump? Good luck with that since the media is reporting that Biden will most likely keep Trump's tariffs on China. The news is reporting now how Trump trade war is a failure in assessing his running for a second term. Most likely it means he's planning to retract Trump's tariffs on the most part because they ain't working now and everyone except Trump say the Americans consumer pays the tariff so why add 10% on top of it. Trump could've just said it was a tax on imports but he wanted to send a message to China to which China had to retaliate. I think the world would've been a much more calmer place if Trump said it was a tax on Americans companies that import.
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A 10% tax on any US company that outsources. Does that implies "newly industrialized" countries like India or Vietnam will also get the tariff?
 
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