US to raise tariffs on $200 billion of Chinese goods up to 25%

[TaiShang]

So I believe China would tariff American products equally.

Will hit them here and there. I guess in terms of overall impact, China's tariffs hurt US more because China selects targets very carefully. The US goes like an elephant in the China shop, without much algorithm and ration, hence, their tariffs partly hit themselves, as well.

China's tariffs on the US hurt the US only, do not hurt China's consumers or businesses.

Import is also an important aspect of economy, creating value and employment.

The US is acting like a child bully. China simply plays them.

 

[OIO]

Breaking: Chinese Vice Premier Liu He has cancelled trip to Washington

 

[TaiShang]

Breaking: Chinese Vice Premier Liu He has cancelled trip to Washington

Very good.

I do not want a win-win end to trade war. China must further push the US into more desperate action. Let's see how long will their health-care insurance spending-based GDP growth be sustained.

Of course, as they get more desperate, they will get more dangerous. Countries like Venezuela may suffer from this angst. But, eventually, everybody will benefit from China's saving the world from the US virus.

 

[jetray]

China's counter-reaction could be already on the way:

Wall Stree Journal report that China may cancel the trade talk with the US, due to President Dotard's tariff threat:

http://www.zaobao.com/realtime/world/story20190506-954215

I suspect it is all part of the grand plan: China had never have real intention to sign any trade deal with Dotard, they just use trade talk to buy time to adjust our great economy that could de-coupling with the US, once the job is done (like now), China just call the US to go **** themselves, leave the US fully unprepared and a world of hurt...

So that's why you see Dotard's angry tweeter, and that's why Wall St Journal report that China may use Dotard's angry tweeter as an excuse to quit this "trade talk".

That's how a highly intelligent people play with a dotard

Play the time, keep the enemy busy, prepare the ground for the next move, and then force the enemy do their move based on the new status quo.

Do you think he does not know about that? Chinese think they can play the waiting game and buy time but the issue is they are dealing with a crazy guy who will go to any extent. This thing is soon going to lead to recession its just a matter of time.

 

[TaiShang]

Do you think he does not know about that? Chinese think they can play the waiting game and buy time but the issue is they are dealing with a crazy guy who will go to any extent. This thing is soon going to lead to recession its just a matter of time.

He may know about it, but, he has 2020 coming up. Winning elections are more important than the long-term interests of the US people.

 

[Get Ya Wig Split]

Trump Hammers China Market Reopen With Stocks, Yuan Slumping
https://www.bloomberg.com/news/arti...y-come-under-pressure-at-reopen-after-holiday

Wow Shanghai index down almost 6%. This is nuts lool. China in shambles.

 

[jetray]

He may know about it, but, he has 2020 coming up. Winning elections are more important than the long-term interests of the US people.

Thats why you should be wary of him, he will do any thing to stay in power. That means cutting imports and showcasing it to public. He will not care about long term effects, that will be left to the next govt to deal with. All that he cares is being in power.

 

[TaiShang]

Thats why you should be wary of him, he will do any thing to stay in power. That means cutting imports and showcasing it to public. He will not care about long term effects, that will be left to the next govt to deal with. All that he cares is being in power.

Not just China, India should worry, too. After all, our growth rates recently have been quite similar.

That's why China diversifies its exports. Currently, exports are about 21% of China's GDP. US share in it is at about 13%. That's from the high of 20 something percent just two years prior.

While US share in trade declined, China's overall trade increased, to hit about $4 trillion. How much is India's trade and what is the % of US share? How much of the GDP of India is from exports?

We may ask the same question to Mexico, Japan, Turkey, South Korea etc. China is not as badly positioned as many others.

The whole world should care. Because, a desperate US government is a threat not only to China or India (that have more means to defend themselves) but to all developing countries that do not have that much defense mechanisms.

 

[艹艹艹]

US has lost patience

 

[jetray]

Not just China, India should worry, too. After all, our growth rates recently have been quite similar.

The whole world should care. Because, a desperate US government is a threat not only to China or India (that have more means to defend themselves) but to all developing countries that do not have that much defense mechanisms.

why should the developing countries poke their nose in a fight thats not going to benefit them. China will be the biggest loser in this fight, developing countries like India,Vietnam,Malaysia...etc have less to lose hence will cut deals and be on the safer side.

Tell me which other developing country is going to support china in this fight? none , at the best russia might make some noise but after that its nothing.

 

[TaiShang]

why should the developing countries poke their nose in a fight thats not going to benefit them. China will be the biggest loser in this fight, developing countries like India,Vietnam,Malaysia...etc have less to lose hence will cut deals and be on the safer side.

Tell me which other developing country is going to support china in this fight? none , at the best russia might make some noise but after that its nothing.

We do not yet know who is going to lose the most.

Tell me which developing country will support India in their fight? None. Not even Pakistan.

 

[jetray]

We do not yet know who is going to lose the most.

Tell me which developing country will support India in their fight? None. Not even Pakistan.

One of the reason US imports from china is bcos it is cheaper, if the cost of imported goods increases then it will affect chinese workers & US consumers. US consumers will be briefly hit and they will try to source imports from other places or will try to manufacture locally which will create more jobs in local economy.

Now for every billion dollar of loss in exports is going to end up throwing out thousands of workers on to the streets. So chinese workers will become first casualty of this trade war along with US consumers who will only suffer initially. As such chinese have to now find alternate markets for export or consume locally.

 

[TaiShang]

One of the reason US imports from china is bcos it is cheaper, if the cost of imported goods increases then it will affect chinese workers & US consumers. US consumers will be briefly hit and they will try to source imports from other places or will try to manufacture locally which will create more jobs in local economy.

Now for every billion dollar of loss in exports is going to end up throwing out thousands of workers on to the streets. So chinese workers will become first casualty of this trade war along with US consumers who will only suffer initially. As such chinese have to now find alternate markets for export or consume locally.

They import from China because China has the world's best logistics and complete manufacturing chain in which everything is within near reach.

The same cannot be said for India.

China will continue to diversify its export destinations and its reliance on US market will be reduced further. Besides, domestic consumption will move from the current 71% of GDP to 80%.

India, however, does not have that much export penetration capacity. India does not produce anything meaningful.

As a result of trade war, India's already frail economic growth will further suffer and because it does not have strong domestic consumption base. India is export-dependent and it is not a competitive country. It is not also an attractive investment destination. Hence, it trails China in terms of global greenfield investment.

 

[jetray]

They import from China because China has the world's best logistics and complete manufacturing chain in which everything is within near reach.

The same cannot be said for India.

China will continue to diversify its export destinations and its reliance on US market will be reduced further. Besides, domestic consumption will move from the current 71% of GDP to 80%.

India, however, does not have that much export penetration capacity. India does not produce anything meaningful.

As a result of trade war, India's already frail economic growth will further suffer and because it does not have strong domestic consumption base. India is export-dependent and it is not a competitive country. It is not also an attractive investment destination. Hence, it trails China in terms of global greenfield investment.

If chinese can consume locally then why export it to USA then? Chinese exports are driven by currency devaluation a.k.a manipulation which makes it cheaper.

If your consumption is increasing then why is your economic growth slowing down?

India, however, does not have that much export penetration capacity. India does not produce anything meaningful.

India is export-dependent and it is not a competitive country.

this is called foot in mouth disease where you contradict yourself.

As a result of trade war, India's already frail economic growth will further suffer and because it does not have strong domestic consumption base.

India does not have much exports and will lose in trade war ? how?????????

Seems trump has already scrambled your eggs.

 

[TaiShang]

If chinese can consume locally then why export it to USA then? Chinese exports are driven by currency devaluation a.k.a manipulation which makes it cheaper.

Probably because we have this silly idea of global trade since time immemorial. I believe Indians hate trade. China's annual trade is near $4 trillion, the US share is about 13%.

Japanese Yen is cheaper than RMB vs. USD. So is Korean Yen. I believe Indian Rupee, too.

Look, your Indian friend liked your post above.