It's so damn annoying. These waste of space countries are begging and groveling instead of coming together and figuring out that the US needs the world more than the world needs the US.
Chinese Economics Thread
- Thread starter Norfolk
- Start date
It occurs to me that certainty—even certainty of a very bad situation—is arguably better for economic activity than the uncertainty of relying on Trump's whim of the day during negotiations. Not even accounting for the inevitable rejection because it's not about tariffs anyway.
If you assume, as Beijing seems to, that the US is simply out of the picture for good, that allows you to start planning out next steps instead of sitting paralyzed while hoping for a magical solution.
If you assume, as Beijing seems to, that the US is simply out of the picture for good, that allows you to start planning out next steps instead of sitting paralyzed while hoping for a magical solution.
Any news on which are those? I haven’t been following the media so I am pretty out of the lube until one day liberation day all is red
So far pretty much none. Vietnam and EU did a conceited offer where they said both sides would lower tariffs to 0, which obviously US can never agree to, since US itself has fairly sky high tariffs on baseline.
I'm sure though China is watching and there will be economic punishments for those breaking rank. It's already bad enough for many export countries to lose access to no2, the mere idea that if they negotiate with Trump and are seen as conceding they will get consequences or even be booted from no1 as well would deter anyone from trying, so they have no choice but to pass the tariff costs to US citizens.
I don't understand why the Chinese indices have sunk lower than the US ones.
Shouldn't the US market be at greater risk of harm from the various tariffs on all of its trade partners than China who only has one significant trade partner affected?
I get capital flowing to the US for safety in a turbulent market, but China very obviously has less risk and even some upside with erstwhile US trade partners trading more with China.
Shouldn't the US market be at greater risk of harm from the various tariffs on all of its trade partners than China who only has one significant trade partner affected?
I get capital flowing to the US for safety in a turbulent market, but China very obviously has less risk and even some upside with erstwhile US trade partners trading more with China.
A lot Europeans countries need the VAT to balance their budgets, is ridiculous.
China doesn't have much of its economy in the stock market and the ones that are listed there are the more vibes based companies generally, or limited portions of bigger companies.
Stock market in US matters because that's the retirement/social security fund for a shit ton of people. In China, that role is served by other public funded interests.
Yes, which is why Trump is doomed to fail. He is demanding that everyone else rewrite their domestic tax codes, fiscal policy, etc, to align with a patently ridiculous delusion instead of economic reality. A delusion which will destroy their own economies and leave them with nothing to export anyway, so who even cares about tariffs at that point?
It's a complete nonstarter politically, no matter who you are and how dependent you are on the US. Even if you hold someone at gunpoint, telling them to commit suicide is not going to work. As Trump would say, you don't have the cards.
In4ser
Junior Member
America's approach is to hit fast and hard to break and demoralize the other side. Most of its measures have near-instantaneous effects, as tariffs on Chinese exports are something the stock market understands and can quickly price in. It's most effective if you can blitz and overwhelm the other side to quickly capitalize with little cost and collateral damage while maximizing your bargaining power with unequal demands.
China's approach is more strategic and relies more on building pressure over time. It's kind of similar to how NATO/Ukraine vs. Russia are fighting their war. Most Americans won't realize its implications of China's tariffs until they try to shift to the 2nd part of Trump's economic plan. After all, it's always easier to destroy something than to build something new. Market forces are going to attack the US side on the cost and productivity of made in the US. After all, manufacturing at home is a more complicated process than the service industry. Manufacturers will not only need to source equipment for the factory but also import subcomponents and other materials for the process. That's where the tariffs on Chinese exports start to bite, as armchair analysts often overlook the B2B side for the B2C side. Can't import that specialized parts or need a rare earth metal for this product? Guess who you will need to buy from, but can't because of the trade war? Or perhaps do so at such a great cost that the product is no longer competitive outside the country? Even if you are somehow able to make it locally without Chinese inputs, and the end product is so cost-prohibitive that people who buy and use it do so at a penalty to foreign peers? Moreover, it's also very likely that domestic consumption will hit a slump because of the uncertainty in the market and high prices weighing down the buying power of domestic consumers. That means less demand to offset the high risk and cost of building that shiny new factory. This is why the longer it drags it out, the more effective China's measure will be and the more painful it will be for the USA.
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Looks like the port fee policy is going ahead after all. How can China respond to this?