Miscellaneous News

Biscuits said:

Nope in the first round was absorbed by US consumers nearly exclusively. Hence why living costs went up so much in US while remaining unchanged in China.

China moved down Yuan much later, with the auto industry boom. It has nothing to do with the trade war, it was a move to gobble up auto market.

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The problem is that the scope of trade war 1.0 was quite small compared to bilateral trade, which is not the case with trade war 2.0.

Tariffs affected inputs and capital goods, not consumer goods. The overwhelming majority of cases of protectionism are aimed at consumer goods. This was not the case in trade war 1.0. An incredible 95% of the tariffs applied were on capital goods and intermediate goods. These are the materials that American companies and industries use to manufacture products. These companies and industries paid more, which led to an artificial increase in their production costs (which is why small and medium-sized companies were being negatively affected).

I hope Trump issues an executive decree that all US schools will replace their lunches with only blocks of plain dense tofu in the name of supporting US soybean farmers.

It time for MAGA to announce government tofu.

FriedButter said:

I hope Trump issues an executive decree that all US schools will replace their lunches with only blocks of plain dense tofu in the name of supporting US soybean farmers.

It time for MAGA to announce government tofu.

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The soybeans produced by American farmers are not intended for human consumption and are fit only as animal feed and/or vegetable oil extraction.

SlothmanAllen said:

I don't really think that is sustainable or smart business practice. If it wasn't for Trump and co. attempting to completely blow up the global trade system, many of those companies would be able to continue to do business within the US.

Like Trump could have taken a measured approach to address trade concerns, but since most of his concerns are based on outright misunderstandings or just xenophobic views towards foreign made goods you cannot expect logical policy goals from this admin.

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W20 said:

That's a projection of your wild imagination. Just because for example 10% of sales are in America doesn't mean you're dependent on America. All I've said is that the margins are so low that Chinese companies are already saying no.

In short

I've stated that Chinese companies' margins are very low

and you've said, "Let the weak, the stupid, and the ugly die!"

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Okay, go beg Trump to spare you then.

siegecrossbow said:

The soybeans produced by American farmers are not intended for human consumption and are fit only as animal feed and/or vegetable oil extraction.

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Right, that's what he said. Use as animal feed.

siegecrossbow said:

The soybeans produced by American farmers are not intended for human consumption and are fit only as animal feed and/or vegetable oil extraction.

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I fail to see the problem in using it in American school lunches.

ZeEa5KPul said:

Okay, go beg Trump to spare you then.

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Low margins are just a feature of Chinese economic model which is hypercompetitive. China is not USA.

Exactly

After turning the simple reality of fierce competition and low margins of many Chinese companies into a controversy, the next step will be to heatedly discuss whether there are Chinese people living in China.

Jiang ZeminFanboy said:

Low margins are just a feature of Chinese economic model which is hypercompetitive. China is not USA.

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It's a very simple principle: If you can't stand the heat, exit the kitchen and leave it to people who can.