Read more at https://www.channelnewsasia.com/news/asia/china-trade-talks-us-tariffs-knife-to-its-neck-10755112
(Updated: )
Ricky Lim
China also accused the United States of engaging in "trade bullyism", and said Washington was intimidating other countries to submit to its will, according to a white paper on the dispute published by China's State Council, or Cabinet, on Monday.
"The sharp criticism (from Beijing on Monday) suggests that China might prefer to wait out the current US administration, rather than embarking on potentially futile negotiations," Mizuho Bank said in a note to clients.
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China should wait till Trump is defeated in the election.
All China need to do is hold on to the tariff until US voters cannot take it anymore - and vote Trump out as President.
(1) Imported inflation is on the rise in US - due to the disruption of the global supply chain - causing price to rise as the global supply chain is making adjustment - increasing cost.
(2) Tariff imposed by Trump and China counter tariff - further add cost to the price of goods imported into US.
(3) US overheating economy - result in higher interest rate to contain inflation - will also result in higher price due to higher business and consumer borrowing cost.
All these will make US voters piss off despite higher employment rate - but eroding US voters' earnings due to higher product prices - cause by Trump's mishandling of the trade with his trading partners.
In fact the downside of US economy overheating and the subsequent dip in the Economy - become more and more likely - because US has exhausted all its economic tools to boost growth by adopting hefty tax cut, overspending - that form bigger and bigger bubbles that will burst when the economy overheat.
Due to the trade war and the hostile economic climate - business will be cool in investment - and this will dampen economic activity in US and the World.
This is the phenomenon of "Boom and Bust".
"The sharp criticism (from Beijing on Monday) suggests that China might prefer to wait out the current US administration, rather than embarking on potentially futile negotiations," Mizuho Bank said in a note to clients.
--
China should wait till Trump is defeated in the election.
All China need to do is hold on to the tariff until US voters cannot take it anymore - and vote Trump out as President.
(1) Imported inflation is on the rise in US - due to the disruption of the global supply chain - causing price to rise as the global supply chain is making adjustment - increasing cost.
(2) Tariff imposed by Trump and China counter tariff - further add cost to the price of goods imported into US.
(3) US overheating economy - result in higher interest rate to contain inflation - will also result in higher price due to higher business and consumer borrowing cost.
All these will make US voters piss off despite higher employment rate - but eroding US voters' earnings due to higher product prices - cause by Trump's mishandling of the trade with his trading partners.
In fact the downside of US economy overheating and the subsequent dip in the Economy - become more and more likely - because US has exhausted all its economic tools to boost growth by adopting hefty tax cut, overspending - that form bigger and bigger bubbles that will burst when the economy overheat.
Due to the trade war and the hostile economic climate - business will be cool in investment - and this will dampen economic activity in US and the World.
This is the phenomenon of "Boom and Bust".
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Ricky Lim
Trump is bullying all his trade partners worldwide - and he need to be punished.
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Ricky Lim
Out of US$19 trillion - 70% of US Economy is consumption based and 30% are based on trade (about US$5 trillion).
This mean that US domestic Economy is highly reliant on cheap import to allow US consumers to enjoy cheap goods.
With Trump whacking China and other trading partners with tariff - it disrupt the global supply chain and cause the imported goods price to increase due to high tariff and higher cost of production.
Trump is digging his own grave as 70% of domestic consumption cover a wide spectrum of US voters - and will feel the impact of imported price increase immediately and broadly.
This trade tariff may expedite the fall of Trump.
China need to tighten its belt and hold it out - Trump may not able to make it for too long.
This mean that US domestic Economy is highly reliant on cheap import to allow US consumers to enjoy cheap goods.
With Trump whacking China and other trading partners with tariff - it disrupt the global supply chain and cause the imported goods price to increase due to high tariff and higher cost of production.
Trump is digging his own grave as 70% of domestic consumption cover a wide spectrum of US voters - and will feel the impact of imported price increase immediately and broadly.
This trade tariff may expedite the fall of Trump.
China need to tighten its belt and hold it out - Trump may not able to make it for too long.
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Ricky Lim
Notably, many US consumers' consumption habit is based on credit - ie. the cost of borrowings will become higher and higher as FED increase interest rate to curb inflation (higher prices).
US consumers patience will run out very soon.
US asset and credit bubble may burst - as cost of borrowings become too high, price of of products become too high --- and Trump will be doom when the bubble burst.
US consumers patience will run out very soon.
US asset and credit bubble may burst - as cost of borrowings become too high, price of of products become too high --- and Trump will be doom when the bubble burst.
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Ricky Lim
And another interesting thing is that, this Trump pull out of Iran nuclear deal and impose sanction on Iran crude oil export and forbid other Countries from buying oil from Iran.
But Opec restrict oil production further squeezing oil production in the World - causing oil price to shoot past $80 a barrel - and Trump is shouting "murder" that Opec is sabotaging his election as it cause US consumer to pay more for the oil price - and hurting his election.
But it is all this big clown Trump's doing !
That is why Trump deserve to be defeated in the election - for causing a big mess in the World by :-
(1) levying trade war against many of his trading partner
(2) pulling out of climate, trade deals
(3) causing alot of havoc in world affairs.
But Opec restrict oil production further squeezing oil production in the World - causing oil price to shoot past $80 a barrel - and Trump is shouting "murder" that Opec is sabotaging his election as it cause US consumer to pay more for the oil price - and hurting his election.
But it is all this big clown Trump's doing !
That is why Trump deserve to be defeated in the election - for causing a big mess in the World by :-
(1) levying trade war against many of his trading partner
(2) pulling out of climate, trade deals
(3) causing alot of havoc in world affairs.
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