Read more at https://www.channelnewsasia.com/news/asia/china-us-donald-trump-xi-jinping-trade-tariffs-10988876
(Updated: )
Ben Tao
Trump started this trade war. Now in a hurry to stop it. Do you want to know why? They have miscalculated the effect. As more and more tariff is being raised against China, more and more manufacturing are closing and leaving. You could not believe they are so dumb. Trump advisers are bent on pushing China to the sea. Their anti- China obsession has blinded them to see trade war is easy to win in view of the wide trade deficit with China. So by imposing 25% tariff on China goods would make China goods more expensive to USA and China goods would be high price. This would force supply chain diversion from China or USA to shift manufacturing back to China..........Ho Ho Ho. Something is beginning to happen in USA. Instead, something bad is happening all over USA. Plant closures and large lay-off is now the order of the day. GM, BMW, Ford are now down- sizing or laying off thousands of workforce. The unexpected....Trump team never expected is happening and is shocking to them.....BMW, GM, Ford...and even Mercs are all shifting their plants to China. Trump team is in big shock. Instead of protecting US industry, the 25% tariff is adding to USA disaster. USA car assemblers buy all the low cost car component to lower their cost of manufacturing from China. Tariff just make the cost of car components 25% higher. In retaliation China added 25% to all USA imports. Look like a fair trade war. However, USA exported more than 250,000 cars to China. .. today world largest market for car. The USA cars are now costing at least 50% more in China. No wonder, all the car manufacturers are closing down or down sizing in USA and shifting manufacturing to China. Is this the way to make USA great again in manufacturing or Trump had made a big blunder in their obsession to destroy China economy. The Trump teams are now in shock and now seeking a face saving truce from China to agreed to undo the tariff war levy. China of course, already implementing measures to satisfy USA to make business easier for foreigners and including USA to make the US negotiation team claimed victory. Had USA blinded proceeded with more tariff barrier, USA industries will hollow out. USA must now consider only high tech industry and trade high tech goods with China to compete in high tech manufacturing. In term of cost of production, USA still lose out. Yes China will dominate the world in 2025 in super high tech manufacturing.
But at least USA can still play a role to supply high tech goods to China booming AI industry. This way, both country will prosper together economically and militarily.
USA must accept the reality to share power with China. China is now made to experience greater power due to USA folly. That was why Baba Vanga, predicted China become a world power in 2018.
But at least USA can still play a role to supply high tech goods to China booming AI industry. This way, both country will prosper together economically and militarily.
USA must accept the reality to share power with China. China is now made to experience greater power due to USA folly. That was why Baba Vanga, predicted China become a world power in 2018.
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