Chinese Economics Thread
- Thread starter Norfolk
- Start date
There is little incentive for China to make the full purchases since Trump will likely restart the war after the his reelection. The decoupling has being going on for awhile now and will not stop with this pause. The "deal" will give Chinese companies time to make adjustments
AssassinsMace
Lieutenant General
Well the US is continuing to work against China's economy by getting other countries not to do business with China. They're still working at trying to get no one to buy Huawei. The US wouldn't call that a hostile act the other way around? I recently read an article complaining about how Chinese officials are using twitter to respond to US actions by using "LOL". They think that's China being aggressive.
Jura The idiot
General
a wonderful construct (it's the second paragraph of
US faces pressure to increase exports ):
"Because of China's enormous trade surplus, the US has used it as a political weapon against China. Expanding the amount of imports from the US is a process to dismantle this weapon. The increase in Chinese imports from the US means that more weapons to counter the US will be held in our hands."
US faces pressure to increase exports ):
"Because of China's enormous trade surplus, the US has used it as a political weapon against China. Expanding the amount of imports from the US is a process to dismantle this weapon. The increase in Chinese imports from the US means that more weapons to counter the US will be held in our hands."
This Huawei business is intriguing. Trump is putting the screw on all the western nations not to use Huawei, yet almost all these nations wants Huawei for their 5G infrastructure. And would have install it if it wasn't US threats of retaliation of security sharing etc.
And least we forget, they are still holding Meng in Canada without charge! It must be over a year now! If this was reverse, they'll be crying human rights, and call in armistice international to boot!
Don't forget, this promised of purchase should be relatively easy to achieve. It uses 2017 as the starting point. So for starters, some of the the increase purchase would have taken place naturally hadn't Trump started this trade war.
In addition, some of the goods and services China promised to buy to increase the "quotas" could be at the expense of other countries. ie: Europe, OZ and South American nations (as China don't have "quotas" with these countries).
In exchange, a roll back of tariff in half! And, here's a joke, the labelling of currency manipulator! Lol ( I won't go in details why is such a joke). This label is not only symbolic, it allows PROUD wide ranging powers to use against nations being so labelled.
So basically all this phrase 1 deal did was put the clock back to last year. And this is more important, a truce for another year to enable Trump to get re-elected. (As his voters are no longer getting hurt by his trade war).
This, Trump believe will put him in a stronger position after he's re-elected. But, China isn't going to stand still, China had the past two years diversify and reduced it's reliance on US supplied chain and as a market. (Sure it's still an important market, but it's importance has reduced as shown by it's number two spot being replaced by ASEAN). It will also allow China extra year to get stronger and readied for any more threats from the US.
Finally, this phrase 1 agreement ends all arguments about "free trade" which US has always championed. In a free trade, surly it doesn't need governments telling another governments to buy more. If you have attractive products and good prices, people will automatically buy from you without government intervention! Which is the accusation thrown at China by USA.