Not sure that this is something that Biden can decide by himself.
Chinese Economics Thread
- Thread starter Norfolk
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Not sure that this is something that Biden can decide by himself.
I think the companies are basically telling Biden to cut a deal with China and drop the tarrifs.
As the asking party will be the US, it will naturally make more concessions than China in order to make a deal.
US faces internal pressure while China is ok
According to some folks, US economy is hotter than ever never been better lol
Dealing with the tariffs can help lower the costs, but the biggest culprit is more of the port congestion in both China and the US that is caused by longer processing times due to Covid. The second biggest culprit lies in the shipping industry where the supply of ships have fallen below the demand, and the third biggest culprit is the shortage of containers.
I actually see the second biggest culprit as the ports in the USA and Europe.
Chinese ports have the spare capacity to ramp up exports, but the ports in the USA and Europe don't have enough capacity to receive all the ships AND ensure all the containers are moved in/out
If the ports in the USA and Europe added capacity, then the ship shortage and the container shortage would largely be resolved.
Currently container ships are waiting outside Los Angeles port for 8 days. The Asia-US transit time is approximately 21 days.
So if delays at Los Angeles were eliminated, you would automatically get 38% more import container capacity.
Plus all those empty containers sitting in the USA would flood back towards Asia.
How do they deal with corporations and rich folks who have both legal and non-legal channels to move assets overseas, especially through empty shell companies and families overseas.