Why the trade war with China from DT

mmpleaser

Have been wondering why it started in the first place.

Xi treated DT a rare dinner within the forbidden palace when never happened before (as I understood).

DT returned the favor by starting the trade war to reduce US trade deficit with China.

Why do US buy from China ?  Cheap labor, good quality and logistics supply chain.
Its purchases lowered the cost of living for most Americans but deprived some job opportunity for American.  Really those jobs of low wages normally not wanted by average American and may be by Undocumented workers.

Even China was ready to compromise to lower US trade deficit willingly.

But think the real issue if the SUPREMACY of the world power.
US is no longer the world number 1 as it used to be for the last 70 years after WW 2.  China is catching up to US soon.  Witness the fast buildup of China infrastructure within the country, as well as the foreign infrastructure of supply going to other countries.  China is having more influence in other parts of the world, SE asia and Africa.  Friends to Middle East Muslims.

Now not only there is trade war with tariff on soon ALL Chinese goods, but also banning the use of Chinese smartphones as well restricting export of US chip components to Chinese high tech companies.
On what basis do they have a right to do that ?

Looking at US airports, trains, road, they are all a mess.
I am ready to check out the high speed train in HK and if possible bridge to SOMEWHERE from HK to Macau and China.  All open this year recently.

After the Canton fair, they have a winter airline travel sale.  Good price to travel there.

mmpleaser

With the mid term election on Nov 6, DT is trying to give hope to Agriculture states farmer so they will still vote for Republicans next week.  By talking to Xi, world is full of hope for cease fire of trade war.

This DT is really aware of tactics to wage a war to keep his base, while further dividing the USA.

anon1

All Xi needs to do is give Jared Kushner $500 million to bail him out of 666 Park Ave. like the Saudis did. Trump's foreign policy is based on personal profit.

mmpleaser

anon1 发表于 2018-11-22 16:36
All Xi needs to do is give Jared Kushner $500 million to bail him out of 666 Park Ave. like the Saud ...

Jared needs more than 500 mm.
Mortgage was 1.6 Bn,. I think.

grieferjackd

S. Bannon and R. Lighthizer already explained this, if the US doesn’t act now and force China to reform, the US may lose the ability to do so in 10 years, here are some reasons.

1. China has been forcing international businesses to transfer their intellectual properties for years, an unfair practice, and now Chinese firms want to compete against foreign counterparts with these licensed patents, obviously the West will lose the competition because of China’s EFFICIENCY, efficiency at the cost of basic human rights and justice.

2. China promised to open its market and treat foreign capital equally when it joined the WTO, but its government still wouldn’t allow foreign investors to buy and control Chinese companies, using national security as an excuse, meanwhile state-backed Chinese companies bought thousands of western businesses, the Party can use these businesses to exert political pressure on western democracies.

3. The US is paying for the world’s public goods, China is the party which benefited the most from this, but contributed nothing, instead, China cheats the current system for its own gain. I don’t agree with Trump’s rogue diplomacy, but I will call China a freeloader, a rude one.
How is the US paying for global public goods? The country surrendered its controll over monetary policies to offer a global currency, and spent billions(if not trillions) safeguarding trade—people are not paying for this! The US will go bankrupt if this continues!

4. The US helped China expecting China will become a democracy as its economy grows, however, Xi’s reign proved this fruitless, the US has the right to withdraw its support if China refuses to cooperate.

5. Trump does need to offer something good for his voters, he risked his family’s reputation for his position, at least he needs a success for Ivanka, if not the GOP, there’s no turning back now.

dragondick

I did not participate in this topic's discussion any earlier because the topic was wrong from the beginning!

As a starter, DT's trade war is NOT with China only.  The trade war is  with the rest of world!  

The problem with US trade deficit is that all other countries can produce the items which US needs, with the same quality and at much lower cost than can be produced in USA.  If the current suppliers do not supply, or the products are artificially made more expensive after import duties, another country, not previously supplying this item will then cash in.

DT still thinks US is the same world power right after WW-II, however, those days are gone due to continuously starting regional conflicts/wars everywhere which drained US Government coffers.  When the Government is out of money, the President will propose, and the Congress will approve a new debt ceiling via issuing Government bonds which are issued with no collateral (Can you borrow money from banks without collateral??).

Countries with extra cash via export will then snatch these bonds as an interest earner.  As a result, countries, e.g. China and Japan, with the best trading results hold the most US Govt Bonds.

If you want to borrow money from a bank without offering any collateral, you better be friendly with the loan officers (in this case China), and refrain from making demands.  That is what DT is currently doing, making all kinds of demands which basically ask China to surrender which will never happen and basically 50 years too late.

The appropriate thing to do is "shut the fuck up", clean up your act/house, then speak from a position of economic strength, not weakness.

mmpleaser

But the problem with the loan is in USD.
IF USD devalued, it is worth NOTHING.  One does not get some GOLD from the US BOND or money so called legal tender.

dragondick

After the G20 meeting in Buenos Aires, basically all  heads of states left.  While on the back to Washington DC, DT resorted to his old tactics and claimed that China agreed to:

1.  Resume purchase of US' agricultural products
2.  Lift restriction on US car exports to China

China rebuked and said there was never any agreements from the discussion.  

Based on common sense, if there were agreements, something had to be signed and announced before closure of G20 meeting because it was supposedly a "big deal".

Obviously DT placed more lies on top of lies and he still hasn't learnt that if he continued with this type of tactics, he lost all credibility and China (other countries in the future) would not be interested in any future negotiations.

Let us look at DT's claim of China's concession:
1.  China has already signed supply agreement with other countries, and simply cannot swing soy bean purchase within a short time.  Of course, nothing was signed with DT this time as well.
2.  Both Ford and GM have plants in China, making vehicles, these two are already in China!  Why would US need China to lift vehicle import restrictions?  That was a plain lie!

From the very beginning, I said DT painted himself into a dead corner and tried to force China to give in, and I didn't see how he could get out of this jam unscathed!  

Every time DT raised the stakes, China matched it immediately.  DT seemed to forget that China is US' major creditor, in addition, China is the world's major supplier of "rare earth" material which all Western countries need for manufacturing new technological and military equipment.

No country wins in a trade war, but time is on China's side, among other things, and will wait for DT's fall from impeachment under a Democrat-controlled Congress.  

mmpleaser

dragondick 发表于 2018-12-4 13:08
After the G20 meeting in Buenos Aires, basically all  heads of states left.  While on the back to Wa ...

I understand there are German cars in US being shipped to China.

DT is trying to save face with China.
China really does not feel need to lower the tariff as it is the US consumers who are interested in lower consumer products.

US cannot really move their imports to other parts of Asia.  Do not have the culture or logistics to supply US.
On the other hand, China has a demographic issue that not enough young workers to supply.
They want the rural workers going back to the cleaner villages with BED AND BREAKFAST relaxation for domestic urban dweller.

Cleaner air and water will result as more sunset dirty heavy industries are shut instead.

mmpleaser

The whole fight is really on TECHNOLOGY front,  5G, AI, infrature building etc.  US is BEHIND.