Tariffs will make China retaliate by posing import tax on Apple.

[Slash K]

Tariffs will make China retaliate by posing import tax on Apple. Beijing is now considering counterattacking ways for US increased tariffs. In recent post from Xinhua net which is the biggest official media in China mentioned Apple product sales will be impacted if the trade war sour.

 

[Pat494]

OK so its tough luck the Yanks are lumbered with an idiot.
All the more opportunities for other countries to take over their
old trades with China. Er which don't add up to much more than soyabeens anyway.

 

[Trader333]

In my view China will come to an agreement with the US when you look at how much more China exports to the US compared with what they import. To not do so will have a collosal impact on China compared to what it will do the US.

 

[Pat494]

The Chinese are re-opening the Silk Road from China to Europe. It is Xi's big idea and it is evident today in Belarus where they have set up factories ( making diesel engines etc.) and living accomodation.. The same global capitalism that Europe and the USA once believed in and have now lost . The Europeans may have the guts to tell the US to get stuffed when they object.

 

[lmans66]

China 2025 is going to work....China is patient and they have a country of followers, for if you don't follow, you are absorbed into the system and never to be seen again🙂. So given that, China can afford to be patient too. They just need to wait the trade war out and in the meantime begin building the infrastructure to their 2025, which this Silk Road bit is a small portion of. On the other hand, America is not going to allow MR trump much leeway. If the markets fall and our IRA's and 401's are hurting, it will show in the polls. America is run on money, ....the rich take more and demand more of it with each administration, the middle class try to hold on to their 401's and the poor are too stupid to care (as evident by trumps major base).

 

[cantagril]

China 2025 is going to work....China is patient and they have a country of followers, for if you don't follow, you are absorbed into the system and never to be seen again🙂. So given that, China can afford to be patient too. They just need to wait the trade war out and in the meantime begin building the infrastructure to their 2025, which this Silk Road bit is a small portion of.
..............

Fair points, though imo the situation is far more nuanced. The Chinese dilemma is that they need to be able to manage the decline in their growth rate in such a manner that it doesn't cause too much internal instability. One of the reasons why China doesn't get too involved in external political considerations is that it is international trade which allows them to continue their own development at such a rapid pace. As the developed world's markets become more difficult to access they are turning to recycling the Silk Road and ramping up the purchase of Africa.

Retaliation against US tariffs has to happen but this will not happen Trump-style. The Chinese are far too pragmatic to jeopardise the long-term for the short and whilst the argument may take a while to sort out it actually strengthens Xi's hand in that a future deal with the US will make China far more able to adjust to the increasing constraints of the West. There has been considerable chatter around the possibility that the Chinese may stop buying US debt but again, it is not in their interests to seriously damage the American and possibly the world's economy.

To my mind, the current "trade war" will not drag on and a deal will be done and dusted (and even partly respected) in a few months at most. Xi will show admirable restraint in dealing with Trump, entirely based on furthering their own interests. The US soybean farmers and a few others will be up in arms, probably just enough to ensure that the Orange one doesn't get in for a second term and the Chinese can continue colonising Africa and sorting out the super-highway to Europe's back door.

 

[Pat494]

I h

Fair points, though imo the situation is far more nuanced. The Chinese dilemma is that they need to be able to manage the decline in their growth rate in such a manner that it doesn't cause too much internal instability. One of the reasons why China doesn't get too involved in external political considerations is that it is international trade which allows them to continue their own development at such a rapid pace. As the developed world's markets become more difficult to access they are turning to recycling the Silk Road and ramping up the purchase of Africa.

Retaliation against US tariffs has to happen but this will not happen Trump-style. The Chinese are far too pragmatic to jeopardise the long-term for the short and whilst the argument may take a while to sort out it actually strengthens Xi's hand in that a future deal with the US will make China far more able to adjust to the increasing constraints of the West. There has been considerable chatter around the possibility that the Chinese may stop buying US debt but again, it is not in their interests to seriously damage the American and possibly the world's economy.

To my mind, the current "trade war" will not drag on and a deal will be done and dusted (and even partly respected) in a few months at most. Xi will show admirable restraint in dealing with Trump, entirely based on furthering their own interests. The US soybean farmers and a few others will be up in arms, probably just enough to ensure that the Orange one doesn't get in for a second term and the Chinese can continue colonising Africa and sorting out the super-highway to Europe's back door.

Hope you are right that China can afford the long view and not just use tit-for-tat measures.
Trump's policies are making the US look childish and petulant. They are wasting their wealth on the military which doesn't produce much of a financial return or make friends abroad.

 

[lmans66]

Fair points, though imo the situation is far more nuanced. The Chinese dilemma is that they need to be able to manage the decline in their growth rate in such a manner that it doesn't cause too much internal instability. One of the reasons why China doesn't get too involved in external political considerations is that it is international trade which allows them to continue their own development at such a rapid pace. As the developed world's markets become more difficult to access they are turning to recycling the Silk Road and ramping up the purchase of Africa.

Retaliation against US tariffs has to happen but this will not happen Trump-style. The Chinese are far too pragmatic to jeopardise the long-term for the short and whilst the argument may take a while to sort out it actually strengthens Xi's hand in that a future deal with the US will make China far more able to adjust to the increasing constraints of the West. There has been considerable chatter around the possibility that the Chinese may stop buying US debt but again, it is not in their interests to seriously damage the American and possibly the world's economy.

To my mind, the current "trade war" will not drag on and a deal will be done and dusted (and even partly respected) in a few months at most. Xi will show admirable restraint in dealing with Trump, entirely based on furthering their own interests. The US soybean farmers and a few others will be up in arms, probably just enough to ensure that the Orange one doesn't get in for a second term and the Chinese can continue colonising Africa and sorting out the super-highway to Europe's back door.

Good points....The Chinese have it inherent within their culture to be patient, while much of the western world and especially the US, have no patience. Thus, Trump goes off in the night on tweets showing his impatience while the Chinese never say a thing, but wait a few days to actually 'think' about a response. The long term is what the Chinese want. I like this 'Xi will show admirable restraint in dealing with Trump, entirely based on furthering their own interests...." Agreed. That is the way the Chinese think. They are scholarly in a sense while trump is a teenager, brash and stupid. 🙂

 

[lmans66]

I h

Hope you are right that China can afford the long view and not just use tit-for-tat measures.
Trump's policies are making the US look childish and petulant. They are wasting their wealth on the military which doesn't produce much of a financial return or make friends abroad.

Being from the US, many if not the majority are embarrassed by trump. We want to hide in the corner and hope that the country can turn around in 2020. If not, ...the world and politics will have completely changed. To be fair though, like what is happening in Europe, this is a world-wide issue and trump (in our case and brexit in UK) is a by-product of how the wealthy have abused power. So this is just a natural flow, thus trump appeals to the commoners and poor and stupid in many cases. The problem is, he might appeal to them in words, but not in actions.

 

[monro00]

The Chinese are re-opening the Silk Road from China to Europe. It is Xi's enormous thought and today is obvious in Belarus where they have set up production lines ( making diesel motors and so forth.) and living accomodation.. The equivalent worldwide free enterprise that Europe and the USA once trusted in and have now lost . The Europeans may have the guts to advise the US to get stuffed when they object.

 

[robiul]

In my view China will go to a concurrence with the US when you take a gander at the amount more China fares to the US contrasted and what they import. To not do as such will have a collosal sway on China contrasted with what it will do the US.

 

[trendie]

https://uk.reuters.com/article/us-c...s-soar-on-trade-war-speculation-idUKKCN1SR14A

China appears to have a large reserves of rare earth metals, that are strategic to our technology.
I read elsewhere that the rare metals needed for compact batteries for the new era electric cars are reliant on Chinese mines.
Aren't our newest cutting edge tech dependent on the natural resources of other countries to be possible?
Its not just oil now.
China may have more sway than just tit-for-tat tariffs.

Hope you're all enjoying the sun. 🙂

 

[new_trader]

In my view China will come to an agreement with the US when you look at how much more China exports to the US compared with what they import. To not do so will have a collosal impact on China compared to what it will do the US.

China may come to an agreement but not for the reasons you mention. Here are my reasons:

• China is one of the largest buyers of US treasuries so in effect they are subsidising America’s consumption, or to use another economist’s phrase “China is vendor financing America’s consumption.
• China has a huge and growing middle class that can start consuming the products currently being exported to America, especially if China stopped artificially suppressing the value of their currency.
• China already has all the factories needed to build everything. America’s manufacturing base has decayed over the decades and most factories have probably been dismantled or repurposed. It would take years to get them back to a state where they could replace the manufacturing from China. Trump could be out of office by then.
• All the American companies that currently manufacture in China would (IMHO) be hesitant to invest any sizeable amount in moving manufacturing back to America because of the uncertainty relating to the previous point. How long will the tariffs last? Will Trump win the next election? Etc… if this is a waiting game, I think China easily has the upper hand.

 

[new_trader]

China may come to an agreement but not for the reasons you mention. Here are my reasons:

• China is one of the largest buyers of US treasuries so in effect they are subsidising America’s consumption, or to use another economist’s phrase “China is vendor financing America’s consumption.
• China has a huge and growing middle class that can start consuming the products currently being exported to America, especially if China stopped artificially suppressing the value of their currency.
• China already has all the factories needed to build everything. America’s manufacturing base has decayed over the decades and most factories have probably been dismantled or repurposed. It would take years to get them back to a state where they could replace the manufacturing from China. Trump could be out of office by then.
• All the American companies that currently manufacture in China would (IMHO) be hesitant to invest any sizeable amount in moving manufacturing back to America because of the uncertainty relating to the previous point. How long will the tariffs last? Will Trump win the next election? Etc… if this is a waiting game, I think China easily has the upper hand.

Haha!

"WASHINGTON, July 26 (Reuters) - U.S. President Donald Trump on Friday offered a pessimistic view on reaching a trade deal with China, saying Beijing may not sign one before the November 2020 election in hopes a Democrat who will be easier to deal with, will win."

UPDATE 2-Trump says China may try to delay trade deal until 2020 election

 

[Pat494]

Beijing , Moscow and The Rest of The World are hoping for a Democrat win in 2020.
The US workers might just wake up to how they have been conned by Trump & co. by then but don't bet on it. They are awfully stupid. Trump is for the rich becoming even richer at the poor's expense. A visiting ET might well wonder what is the point as the rich will be unlikely to change their current profligate spending habits. The UK have just had a non nationally elected Johnson thrust onto their shoulders. Another Trumpite it seems.
Perhaps in years to come historians may look back on this era as " The Game Show " era. Trump and co have to act the fool, even publicly to retain support.

 

[new_trader]

Beijing , Moscow and The Rest of The World are hoping for a Democrat win in 2020.
The US workers might just wake up to how they have been conned by Trump & co. by then but don't bet on it. They are awfully stupid.

Looking at the current rate the US Government is spending and growing the National debt it's clear that Trump is a RINO.

I agree, the average voter is awfully stupid.