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Mike Pence 'We rebuilt China over the last 25 years'

haidian said:
Funny, did EU and US only buy things from China? How much they love China so they decided to build up China? China takes over the market by our hardworking people and smart business mentality. EU and US don't love China, they only want the best deals they can find.
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US built up China as they hated the Soviets.
 
Tiberius said:
China itself has no big doemstic market. You see it as they cant realy strike back with tariffs, they depend on export.
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The Chinese will this year take the title of the world's biggest consumers
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The mighty force of consumerism has taken hold in China. In 2018, retail sales in China are expected to equal or surpass sales in the United States for the first time, another definitive marker in China's rise to economic superpower status. The growth of China's domestic retail market is luring everyone from automakers to make up companies that want to cash in on the country's growing middle class, but it also serves as another complication in President Donald Trump's quest to transform US-China trade.

Retail sales in China are on track to hit just over $US5.8 trillion ($7.4 trillion) this year, according to Mizuho, a Japanese bank. It's a stunning rise from a decade ago, when retail sales in China were a quarter of those in the United States. China's rapidly growing middle class has been eager to buy brand-name clothes, cars and cellphones, among other products. Shanghai is now referred to in fashion circles as "Paris of the East." Their spending habits have been supported by fatter paycheques, with China's income per capita jumping from about $US2000 a year a decade ago to over $US8000 a year now.

"China's best bargaining chip is its massive and fast-growing domestic market," says Jianguang Shen, chief China economist for Mizuho, who pointed out the retail trend in a recent presentation in Washington, DC. "This will change the balance (of power) tremendously, as it is first time when the US is dealing with a market of equal size in a potential trade war."

'Economic enemy'
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On the campaign trail, Trump railed against China as the "economic enemy" of the American people. He harped on the fact that the United States buys far more than it sells to China. The United States ran a $US310 billion trade deficit with China in 2016. But Trump has softened his tone on China lately, especially after he visited China in November, and the countries have jointly faced escalating nuclear tensions with North Korea.

Steve Bannon, Trump's former chief strategist, was one of the harshest critics of China in the White House. "To me, the economic war with China is everything," Bannon said over the summer. His excommunication from the Trump fold might also reduce the urgency in the White House to go after China.

Still, the two nations continue to dance around each other in a quest for global and economic dominance. Both sides continue to look for leverage over the other. On Wednesday morning, news that the Chinese government might halt its purchases of US Treasurys was enough to temporarily spook US markets, sending stocks sliding in early trading. China is the largest foreign holder of US Treasurys. There are also more playful jabs between the countries. A mall in northern China put up a giant dog balloon that bears a striking resemblance to Trump.

If Trump really wants to go after China on trade, "we will need leverage and we will need allies," says Olin Wethington, who served as a special envoy to China in 2005 and as an economic adviser to President George HW Bush. Wethington's name has surfaced for a possible role in Trump's State Department.

'Immense bargaining power'

Wethington says he personally prefers bringing trade cases against China over the blanket tariffs Trump talked about on the campaign trail, which many warn would spark a trade war that could harm the US economy and the stock market's rapid climb.

While Trump wants to show his blue-collar base he is being tough on trade, big businesses don't want to see any dramatic actions. Over 20 per cent of sales at companies like General Motors, Boeing and Apple now come from China, says Shen, the Mizuho economist. Any restrictions on Chinese access to the United States would likely be met with barriers to American companies selling in China.

"China is one of the most important markets for many US multinational companies," Shen says. "This should lend China immense bargaining power."

A record 17.6 million vehicles were sold in the United States in 2016, for example, but that was far below the 24 million passenger cars sold in China. US automakers account for about 1 out of every 5 cars sold in China, even though the communist government placed a 10 per cent tax on luxury cars and trucks imported from the United States.


But MIT economist David Autor, an authority on trade and automation, thinks the United States still has substantial leverage in any debate with President Xi Jinping of China.

Tariffs and steel
"China exports a substantial piece of its GDP to the United States. They are very dependent on our markets," Autor says. The United States currently buys 19 per cent of China's total exports.

One area where there's a lot of agreement across the political spectrum is to go after China's theft of US intellectual property. It's an increasingly important area as the race for global dominance in robotics, biotech and new energy takes off. Trump has been mulling whether to take action, although he's largely been focused on Chinese steel and aluminum. Trump has pointed to the tariffs President Ronald Reagan put on Japanese semiconductors in the 1980s as a model he wants to emulate, but the difference is the US economy was far larger than Japan's at the time. Now the United States faces an economic equal.


As Trump deliberates what to do, Autor says the president has already handed China a great victory on trade.

"Trump did China the biggest favour of the last 10 years by tearing up TPP (the Trans-Pacific Partnership)," Autor says, calling it the best gift to China since the communist country joined the World Trade Organisation in 2001. "If you want to look for an inflection point in rate of US global decline, we'll probably be able to point to tearing up TPP."
https://www.afr.com/business/retail...-the-worlds-biggest-consumers-20180111-h0h672
 
Tiberius said:
Companies can get taken away their property. Production can get relocated easily.

China itself has no big doemstic market. You see it as they cant realy strike back with tariffs, they depend on export.
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The bold : LOL, funny comment. Do you know that Chinese GDP PPP (Purchasing Power Parity) is higher than USA? What is that mean? It mean that they have the biggest domestic market in this planet. Even with the whole EU combined, you have less people than the number of Middle income people in China.

Don't read it wrong. i don't say about the whole Chinese people that is 1,4 billions. Just their rich and middle income people. Their number alone is even bigger than the whole EU population. So, even if China still have more than 500 millions poor people, They can buy more luxury cars, etc than the whole EU people combined.
 
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Brainsucker said:
The bold : LOL, funny comment. Do you know that Chinese GDP PPP (Purchasing Power Parity) is higher than USA? What is that mean? It mean that they have the biggest domestic market in this planet. Even with the whole EU combined, you have less people than the number of Middle income people in China.

Don't read it wrong. i don't say about the whole Chinese people that is 1,4 billions. Just their rich and middle income people. Their number alone is even bigger than the whole EU population. So, even if China still have more than 500 millions poor people, They can buy more luxury cars, etc than the whole EU people combined.
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Great. No need to trade with China then. Best for both sides. Thanks for agreeing.
 
Tiberius said:
Great. No need to trade with China then. Best for both sides. Thanks for agreeing.
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LOL, I laugh out loud after reading your comment. Do you know what is the biggest market means? It means that they attract more money than everywhere else. That's why a lot of EU big business come to sell their products in China. Avoid China means that you lose a very big opportunity to raise your fortune.

That's why German's economy is better than yours. They know where the money come, while yours don't.
 
Brainsucker said:
LOL, I laugh out loud after reading your comment. Do you know what is the biggest market means? It means that they attract more money than everywhere else. That's why a lot of EU big business come to sell their products in China. Avoid China means that you lose a very big opportunity to raise your fortune.

That's why German's economy is better than yours. They know where the money come, while yours don't.
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Germany last months put many anti china investment laws in action and banns chiense investors to enter german market.
 

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