China Trade War - Tarrifs, Tarrifs and more Tarrifs

[huja]

That is a good read.

If you believe Trump is capable of long term strategic thought you could argue he is using a similar approach to Reagan and the USSR. Back then it was outspending them on weapons to fundamentally change the long term and now it is out tariffing them. Regardless of what happens this week it is a wake-up call for the world to have a 'China plus 1' strategy. As soon as the USA consumer drives industrial development in other low cost countries. Once established this will change the relationship of China and the world. Where it is now dominant in manufacturing many sectors it will quickly change (think bedroom furniture). Hopefully the China economy is too debt laden and export reliant.

Having this conversation with the wife today. If you are a CEO of a company that sources exclusively from China and you haven't been working to find other OEM options, you should be shit-canned. The Vietnams and Indonesias of the world should be rolling out the red carpet for a once in a generation chance to lure multinationals.

[huja]

https://www.scmp.com/economy/china-e...nch-us-economy

Apart from arresting Canadians what other tools does the CCP have to fight back? Corruption charges, rent hikes for US firms, lawfare in general?

Lot of tough guys saying tough things during this spat.

[East_coast]

Having this conversation with the wife today. If you are a CEO of a company that sources exclusively from China and you haven't been working to find other OEM options, you should be shit-canned. The Vietnams and Indonesias of the world should be rolling out the red carpet for a once in a generation chance to lure multinationals.

It is happening. Just to check I called a few recruitment firms in Vietnam, Indian, Indonisia and they are very busy trying to find people for multinationals to resource from China. Mr Trump has changed the direction of the world whether we like it or not.


What tools does China have to retaliate?

[huja]

https://www.economist.com/china/2019...uggest-despair

[TheBrit]

What tools does China have to retaliate?

The ones listed in that article you posted?

US agriculture products would be a natural primary target for retaliation, especially wheat, corn and pork, Wei said.
...
China could also place sanctions on US planes and vehicles, he said, making it more difficult for these products to enter the Chinese market.
...
China could move beyond the goods trade and target services, particularly in the finance, tourism and cultural sectors, Wei said.

Other tools would be strong-arm diplomacy on weaker countries, reducing the trillions of dollars they lend to the US, creating more obstacles for exiting and planned US investment, raising tariffs further... joining TPP would be a masterstroke... lots of policy options.

[East_coast]

The ones listed in that article you posted?



Other tools would be strong-arm diplomacy on weaker countries, reducing the trillions of dollars they lend to the US, creating more obstacles for exiting and planned US investment, raising tariffs further... joining TPP would be a masterstroke... lots of policy options.

I suspect also patent infringements, sub-standard materials confiscated.

As for soybeans and other agri-products I suspect Trump will recycle some of the taxes he is raising and litter his core constituents with favours masked as a relief programme.

[chuckster007]

More mainlanders are going to come to HK to buy their Iphones lol

China said it would impose 25 per cent duties on a portion of US$60 billion worth of US goods starting on June 1

https://www.scmp.com/news/china/poli...tures-tumbling

[shri]

@chuckster007 - I don't think iPhones are on the current round of tariffs. Next round for sure, they're running out of things to add tax, given how relatively less they import from the US.

[TheBrit]

@chuckster007 - I don't think iPhones are on the current round of tariffs. Next round for sure, they're running out of things to add tax, given how relatively less they import from the US.

Given iPhones are assembled in China I very much doubt they're on the Chinese tariff list!

[hullexile]

Original Post Deleted

And the American version, boycott Huawei. That is one of the problems, once both sides have stirred up the anti sentiment in their populations it becomes hard to back down.