Miscellaneous News
- Thread starter bd popeye
- Start date
plawolf
Lieutenant General
And before people jump in with the usual ignorant nonsense of, ‘well they can just ship it via a third country’, they cannot. Not without committing fraud in any case.
Customs don’t care from where something is physically shipped from but rather where something was made. That’s why you cannot simply ship everything to Mexico and have it enter the US market tariff free under NAFTA.
Thus the significance of this change is that things made in Lithuania simply cannot be legally exported to China now, because you literally cannot select Lithuania as the country of origin for the customs declaration.
The only way Lithuanian products could (legally) enter the Chinese market now is if they were used as a (very small value) component for the finished products made elsewhere.
To illustrate just how bad a deal this is for Lithuania, while on the face of it, getting $600m from America in exchange for loosing $300m in trade might seem like a good deal, but if you factor in that the $300m is annual trade while the $600m handout from the Americans is a one-off, you might start to see the problem.
But I suspect the people in charge in Lithuania doesn’t care, because they are the ones getting the $600m while it’s ordinary hard working people who are loosing $300m every year.
This is how corruption with western characteristics works and how state capture happens.
antiterror13
Brigadier
What happen to Chinese export to Lithuania ~$1.4B a year ? Would China block it as well ? ... good luck to Lithuania, massive inflation is coming
I dont think it will. Export blocks is a trump card which will not be casually used in such an insignificant country
As for importing from Lithiania, China will(already did) 100% ban them. Lithuania is not some magic place. What it produces, China can get from another country
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plawolf
Lieutenant General
I doubt the Chinese government would do anything to impede its own expects. Import and export are totally different forms and databases, so it’s perfectly possible to remove Lithuania from the import system while leaving it on the export system.
Lithuania cannot really effectively reciprocate because it is in the euro zone. Them banning Chinese goods will just see the same goods flow in via its land EU boarders instead. But the bright side for Lithuania is that it isn’t likely to see significant inflation due to this. Goods made in China will get a little more expensive due to increased transport costs and some profiteering, but it won’t go up by too much and there are unlikely to be shortages either.
The big hit is going to be limited to Lithuanian exporters to China.
Lithuania's biggest export to China is cereal.
Last time I checked, cereal wasn't some high level technology like semiconductors that is hard to reproduce.
I think China will do fine finding another uhh producer of cereal.
Inb4 SleepyStudent from his alt starts arguing that Lithuanian cereal is some unique high-tech cereal that is not possible to replace. I remember butthurt Aussies were babbling that somehow their natural resources (coal, iron, beef, etc.) are irreplaceable and now they are crying about their "allies" eating into their profits, because Australia's third-world economic complexity made them easy to substitute, lol.