Chinese Economics Thread

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Kancil

New Member
Registered Member
huemens said:

U.S. Businesses Urge Biden to Restart China Talks, Scrap Tariffs​

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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.
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Maintain or scrap the tariffs, the Chinese couldn't care less. The Chinese should be increasing the export prices in line with the increase in commodities prices. Just pass on the increase production cost to the US. The US can always print more USD. Let the hyperinflation begin.
 
Gatekeeper

Gatekeeper

Brigadier
Registered Member
siegecrossbow said:
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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.
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I'm not sure how much the tariff collect in terms of total revenue. I suspect it isnt all tgat much in tge grand scheme of things.

But you can't look at it in isolation. The cost of keeping the tariff is as follows:

Reduction in sales due to higher end-user price means reduction in sales tax. Plus reduction in profit means reduction in corporation tax. And reduction in dividend tax as firms reduces their dividends they pay out. Also could lead to reduction in overall personal tax as firms cut back in employment or a salary increases.

Then you got the problem with supply side. Lack of investment as firms unable to generate enough profit to attract capital. ...

So as you can see, Biden don't have much options.

Meanwhile I thought this is a fair quick summary of China's rise.

https://www.facebook.com/7746841478/posts/10156596032651479
 
Xizor

Xizor

Captain
Registered Member
What is the current GDP of China?
14.8 trillion was for 2019. It ought to be 17 trillion this year right?

There is no real time tracker for GDP.
 
W

weig2000

Captain
Xsizor said:
What is the current GDP of China?
14.8 trillion was for 2019. It ought to be 17 trillion this year right?

There is no real time tracker for GDP.
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Last year it was $14.7 trillion at average exchange rate of 6.89.

It'll depend up on average exchange rates over the year. Currently, I'll put the 2021 GDP at $17.5 trillion assuming average exchange rate around 6.4.
 
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