I wonder how much of those electronics were parts made in China but just assembled in another country in order to get labelled differently and avoid sanctions/tariffs. I recall there's an article written that after the US slapped solar panel import tariffs on China, some of the Chinese solar industries simply setup an assembly factory in another Asian country to circumvent it.
Very good point. I thought of that too but assembly is still jobs that could be in china. while increasingly having higher tech products and salary would make assembly jobs less desirable, in my mind its still jobs For those lower skilled Chinese workers.
As you have eloquently stated, this is big short-term gain for America. It gets physical goods, made with hardworking Chinese labour, and in return, it gives China some toilet paper.
I don't know about whether China should change just because an EU official complaint or because of anecdotal evidence from one person. The thing is the Chinese officials are highly competent and some of the best in the world based on the track record, unlike most countries, including those from EU.
dude. We have the supply chain in the ball. No matter how much more money they pay, that container isn't leaving the port.What should China do?
Not sure.
The important thing is the play along I feel.
This war in Europe, does not put China in a weaker position, unlike others.
The RMB went down, but not by very much. Perhaps that is just short term relief, to get things in order, get to be more competitive, as we know 5G should be an innovative and efficiency boom for the Chinese economy. Eventually the RMB will probably rise.
In short, the best policy would appear to be for China to keep on playing, but with a view for the long term.
Look at that situation. Americans got a lot of short term gain. Chinese still playing for the long term.
The currency game, may not last. But the Americans got the advantage absolutely in the short term. In the long term, China is still there, and still getting stronger.
Generally, the short term play, will tend to lose out to the long term play. Look at what happened to President Trump's trade war and tech war. After the initial flurry of hostility, the picture becomes clearer.
The trade numbers keep going up for China. The tech profits keep going up, and Chinese tech keeps on expanding.
Huawei reported lower profits. They also reported they spent more money on R&D. Usually, the profits is paid out in dividends or re-invested as R&D. The Western media boast that Huawei profit is down (when it was invested into R&D, something that they wish not to talk about).
So that seems to be where we are at. The Americans made a short term play. Things are too much influx, it could all change still.
In response to that, the China stick to and make more long term plays to counter that. Seems that the long term moves, solidify the present and hold great promise for the future.
See, the Chinese are smart and devious bastards too.
I believe Trump was thinking "import substitution", too. All traffis serve this same purpose. But Trump and his advisor Ron Varo, aka Navarro, forgot that making bikes, toys, smartphones and dishwashers in the US is no longer profitable for the American enterpreneurs.
This is simply projection. Its the West that is imprisoned by its own narritive. They keep saying that there will be major problems in the Chinese economy year after year. But its the Western economies that has been banging from crisis to crisis over the past decades.