In bold, obviously you have not even taken economics 101 YET. The multiplier effect is a BASIC knowledge for anyone who has taken an economics course. When you spend a dollar, that dollar become someone's income (do you even know this???), and so on...this is elementary economics knowledge..genius
http://www.economicsonline.co.uk/Managing_the_economy/The_multiplier_effect.html
In this case, 400 billion on trade surplus becomes 2 trillion of incomes for the Chinese. losing that 400 billion of trade surplus and it hits 2 trillion of your economy....but we are not done yet..
China becomes a middle income country by having trade surplus with the world. china's trade surplus is based on manufacturing industries and its manufacturing industries thrive because of cost competitive, and Chinese cost competitive is based on economy of scale. With the trade war unraveling, Chinese producers will see less units being ordered and as less number of units ordered, that FIXED cost per unit will sky rock, which will make Chinese products lose that price attraction.
Chinese's trade surplus with non-US markets are 950 billion dollars, losing that price attraction (due to higher fixed cost per unit) means china is losing 950 billion a year at face value. Taking into consideration the multiplier effect of 5,..chinese economy is being hit with losing
4.750 TRILLION dollars of income. As your stuperman comrade
@qwerrty said, Chinese economy will contract
6.750 TRILLION dollars as a direct and indirect result from this trade war with the U.S.
But we are not done yet, that's only about the direct and indirect effect from losing the trade surplus. As china's manufacturing cost rise, its products will also become more expensive for the average Chinese joe blow. when prices rise, Chinese consumers will cut back spending and that's the DAGGER to your economy.
You must be really gullible to even believe in what those two journalists of Bloomberg write. If the U.S is having a trade surplus with china, you Chinese wouldn't panic and go sue the U.S with the WTO left and right, LOL