Chinese Economics Thread
- Thread starter Norfolk
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For the first time in a decade, China has released some of its strategic metal stocks to try to dampen a price rally hurting manufacturers. China is the world's largest user of commodities and has built up vast reserves.
The Chinese should not try to suppress the rise in price of commodities cause by the FED's unrelenting QE, but should allow inflation to impact the US economy while trying to address the adverse effect on the Chinese economy by letting the yuan to rise and cut back export rebate and raising export prices to the US. Those commodities prices impacting China's internal market be to overcome by increasing internal productions and using local substitutions.
US small and medium businesses are not doing well either.
In a global pandemic, as long are you are doing better than your competitor, you are doing well.
India is now allowing delta to mutate again and again, until it can evade the vaccines.
But while they do this, they also add or increase export tariffs on various types of steel, for example. This way, it avoids subsidizing the US and other developed economies.
For the first time in a decade, China has released some of its strategic metal stocks to try to dampen a price rally hurting manufacturers. China is the world's largest user of commodities and has built up vast reserves.
finance.yahoo.com
The Chinese should not try to suppress the rise in price of commodities cause by the FED's unrelenting QE, but should allow inflation to impact the US economy while trying to address the adverse effect on the Chinese economy by letting the yuan to rise and cut back export rebate and raising export prices to the US. Those commodities prices impacting China's internal market be to overcome by increasing internal productions and using local substitutions.
U.S. Businesses Urge Biden to Restart China Talks, Scrap Tariffs
More than 30 U.S. trade groups called on the Biden administration to resume negotiations with China and remove tariffs, which they say are harming the American economy.
In a Thursday letter to Treasury Secretary Janet Yellen and Trade Representative Katherine Tai, the groups urged the U.S. government to restart talks with China to ensure Beijing meets its commitments under the 2020 phase one trade deal and increase purchases of American goods in the rest of 2021.
The groups include influential organizations like the U.S. Chamber of Commerce, the American Farm Bureau Federation and the Semiconductor Industry Association.
“Due to the tariffs, U.S. industries face increased costs to manufacture products and provide services domestically, making their exports of these products and services less competitive abroad,” according to a copy of the letter obtained by Bloomberg News. “The administration can take immediate steps to relieve increasing inflationary pressures and rising prices for all Americans” by reducing the import tariffs, they said.
Now we shall see who has control over the USG, will it be the 1%er financiers or the 1%er wannabe 18 words race warriors.
China might add export tariffs even if Biden drops it. He’d be an idiot to do it. Dropping tariffs would mean that the US government will lose an important source of revenue.