Trade War with China

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Biscuits

Major
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US and EU will say that they want all to open or restrict their respective market equally. Let's make an example: US and EU have 1, 2, 3, 4 and China has 2, 3, 4, 5. So Trump will say: "Hey Xi, pls open 2, 3, 4 and 5 together and you can block 1 for national security reason" (China doesn't have 1 :rolleyes:).

Shouldn’t Xi just counter it by demanding US open a more important market?
 

AndrewS

Brigadier
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That's simply not true. Can China purchase Intel or Siemens? When the answer to that question is "yes", then what you stated would be accurate.

Intel and Siemens aren't representative. If you look at deal flows more broadly, we can see there is an imbalance.

And bluntly speaking, foreign companies are less likely to understand the Chinese market.
So they are unlikely to succeed anyway, when compared to their Chinese counterparts.

So China can afford to open up the domestic market much more, without it being a big issue.
 

Anlsvrthng

Captain
Registered Member
Intel and Siemens aren't representative. If you look at deal flows more broadly, we can see there is an imbalance.

And bluntly speaking, foreign companies are less likely to understand the Chinese market.
So they are unlikely to succeed anyway, when compared to their Chinese counterparts.

So China can afford to open up the domestic market much more, without it being a big issue.
This is true for opposite direction as well, the Chinese companies doesn't understand the foreign markets.
 

AndrewS

Brigadier
Registered Member
This is true for opposite direction as well, the Chinese companies doesn't understand the foreign markets.

True. But what matters is that Chinese companies and individuals have a better understanding of what is happening in the US and European markets.

In comparison, most foreign companies and individuals have absolutely no idea about China.

Plus Chinese companies generally have a larger domestic market as a base to work from.

And we're seeing the China spending more on R&D than the USA.

So that is why I think China doesn't have anything to fear from opening up for investments.
 

A.Man

Major
Intel and Siemens aren't representative. If you look at deal flows more broadly, we can see there is an imbalance.

And bluntly speaking, foreign companies are less likely to understand the Chinese market.
So they are unlikely to succeed anyway, when compared to their Chinese counterparts.

So China can afford to open up the domestic market much more, without it being a big issue.
My friend, in 2017, US companies had $600 billion of "Made in China" products sold in China.
 
now I read
China urges seeking "mutually acceptable solutions" on issues with U.S.
Xinhua| 2018-11-15 20:03:35
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China on Thursday urged the United States to implement the consensus reached by the two heads of state and strive for "mutually acceptable solutions" on issues of common concern through consultations to push the healthy and steady development of bilateral ties.

Foreign Ministry spokesperson Hua Chunying made the remarks at a news briefing when answering a question related to U.S. Vice President Mike Pence's recent comment that China should change its behavior in economic, military and political activities to pave the way for reaching an agreement between the two countries during the G20 Summit in Argentina.

"The China-U.S. relations is at an important juncture," said Hua, stressing that both sides need to make correct choices and make practical efforts to ensure a healthy and steady development of bilateral ties in the right direction.

She said doing so is in line with the fundamental interests of the peoples of the two countries and the world, and it is also the common expectation of the international community.

China respects the sovereignty, security, and development interests of the U.S., Hua said, stressing that the U.S. should also treat China the same way and respect the development path chosen by the Chinese people, which suits China's national conditions, said Hua.

She reiterated China's stance on economic and trade consultations with the United States, saying that "carrying out consultations on the basis of mutual respect, reciprocity, and mutual benefit is the only correct way to resolve economic and trade issues."

She called on the U.S. side to implement the consensus reached by the two heads of state, focus on cooperation and eliminate interference, and conduct honest and serious consultations based on mutual respect and mutual benefit to strive for a "mutually acceptable solution."

She said this would turn the "good wishes of of both sides," namely maintaining the healthy and stable development of China-U.S. relations and expanding bilateral economic and trade cooperation, into reality.
 

AndrewS

Brigadier
Registered Member
My friend, in 2017, US companies had $600 billion of "Made in China" products sold in China.

That is simply first mover advantage and remember that is less than 10% of the market.

Given some time, Chinese companies will be spending more on R&D and will be better and faster at addressing new opportunities.

We've already seen this happen in a number of industries, as per the studies
 
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Anlsvrthng

Captain
Registered Member
That is simply first mover advantage and remember that is less than 10% of the market.

Given some time, Chinese companies will be spending more on R&D and will be better and faster at addressing new opportunities.

We've already seen this happen in a number of industries, as per the studies
The "R&D" that you talk about is only small part of a country success.

An economy level success depends on the capability of each business to improve, including the corner takeway shop.

Many R&D activity in Europe / USA happens in firms without R&D budget, or without considering it as R&D .

In China the SOEs over-representation means many cost, that is the normal " capitalist alley knife fight of companies" considered as research and development.
 
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