Trade War with China

Hendrik_2000 said:

Yeah Vietnam seized 22 island and phillipine at least 10 island

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vincent said:

google image search for "south china sea country control islands"

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Jura said:

now I noticed in Twitter

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an interesting link for those who like maps:

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you can select what claim(s) specifically you want to see for example this 'dense' area:

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China has had to respond in a strong manner as the United States is being unpredictable and challenging, and initiated the trade war, spokesman for the Chinese Ministry of Commerce Gao Feng said on Thursday.

The previous trade negotiations with the US were positive and constructive, they served the interests of the peoples from both sides, accorded with the established rhythm of China's reform and opening up, as well as the rules of WTO, Gao said, however, the US constantly changes its attitude and waged the trade war, US unilateralism will ultimately damage the interests of its own workers and farmers.

The US is used to negotiating with a stick in hands, but that's not going to work with China, this irrational act is not beneficial to fixing problems, Gao said.

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plawolf said:

Just to illustrate the interconnected nature of the modern market, German carmaker Daimler (owns Mercedes-Benz) has just issued a profit warning based on the expected impact of Chinese tarrifs on imported US cars (Daimler makes most of its SUVs in the US).

Expect more warnings like this to follow as companies start to forecast the costs of this trade war for them.

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Hendrik_2000 said:

Good op/ed by China daily in line what I have said Let face all those assembly line job like making toaster, small engine and AC are not going to come back to US . The wage is just too high for those jobs making it too costly product. But other investment might replace it but with the new restriction on investment who want to built plant in US. And they rightly diagnose the cause of the problem in US economy

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The travails of the US economy have been the result of the costly wars the US has pursued and the damage done by the greed and dubious practices exposed by the subprime crisis.

Protectionism symptom of paranoid delusions: China Daily editorial
chinadaily.com.cn | Updated: 2018-06-21 21:02

Luo Jie/China Daily
Having fallen prey to the manipulative maneuvers of the Donald Trump administration in its bid to present the United States as a victim of unfair trade practices, Chinese investment in the US declined significantly in the first five months of this year compared with the same period last year.

According to a report released on Tuesday by Rhodium Group, a research company that tracks Chinese foreign investment, it dropped by 92 percent to only $1.8 billion, its lowest level in seven years.

While Beijing tightened its oversight over outbound investment last year, it is the Trump administration's blitzkrieg on China’s trade and enterprises that is to blame for the decline in Chinese investment, since, overall, China's outbound investment in the first five months increased by 38.5 percent year-on-year, to reach $47.89 billion.

In the same way that it is prone to evoking "fair trade" as a justification for its protectionist tariffs, allegations of "national security risks" have become the go-to excuse for the Trump administration to scuttle acquisitions in the US by Chinese companies. Alibaba's Ant Financial’s $1.2 billion bid to take over MoneyGram and HNA Group's bid for Skybridge Capital, a hedge fund, were both derailed earlier this year due to regulatory vetoes by the Committee on Foreign Investment in the United States. And new legislation is in the works that will raise the regulatory hurdles still higher by expanding the scope of CFIUS scrutiny.

The approach that the US is taking is self-defeating. The woes the administration is inflicting on Chinese companies do not simply translate into boons for US enterprises and the US economy. The trade relationship between China and the US supports millions of jobs in the US, including those that Chinese companies have created directly through their US investments.

The fast-shrinking Chinese investment in the US reflects the damage being done to China-US trade relations — long considered the cornerstone of bilateral ties — by the trade crusade of Trump and his trade hawks.

Their desire to acquire is perhaps understandable, having promised so much, and giving the evangelical zeal they have for US ascendancy. However, times have changed, and what they are doing now is folly given the global value chains that were primarily forged by the US for its advantage.

The travails of the US economy have been the result of the costly wars the US has pursued and the damage done by the greed and dubious practices exposed by the subprime crisis.

The Rhodium report said that the new tariffs might incentivize Chinese manufacturers to localize production in the US to ‘"hop the tariff wall". But if Trump and his hawkish advisers were to look beyond the walls of their ideological fortress, they would realize the tariffs are not necessary as the US is not being besieged.

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The gathering storm over the Pacific Ocean has become an increasingly severe concern for all participants of the global economy.

The Trump Administration, moving to ramp up pressure on China to make trade concessions, threatened to impose tariffs on an additional 200 billion US dollars' worth of Chinese imports and to double that amount if Beijing retaliates with countermeasures.

The announcement came after the White House detailed plans to slap a 25-percent tariff on 50 billion US dollars in goods imported from China, most of which will take effect on July 6.

The world's two largest economies are heading inexorably toward a trade war, which sparked widespread fears worldwide of the possibly damaging ripple effects. Stocks plunged overnight on both sides of the Pacific. People are now speculating on what Beijing’s response might be－and the possible result of this epic contest.

China’s Precision Counterattack: Quantitative and Qualitative

China reacted swiftly and clearly. Gao Feng, spokesman for the Ministry of Commerce, said that preparing additional tariffs worth 200 billion US dollars on the country’s exports to the US was tantamount to “extreme pressure and blackmail.”

In particular, at the ministry’s regular press conference on June 21, Gao further pointed out that if the US introduces a so-called “taxation list” to distort and undermine the fair order of international trade, China is well prepared to take necessary measures to make a strong response, including both “quantitative” and “qualitative” approaches. After all, China is always firm in upholding the interests of the nation and its people.

In this regard, the “quantitative” approach refers to homomorphic counterattacks against Trump's America with tariffs and other tools. The “quantitative” approach, as a common practice, often responds to (threats of) a trade war waged by other states proportionately and synchronously.

However, when faced with the reality of the China-US trade balance (China exported goods of 506 billion dollars while it imported 130 billion dollars from the US in 2017), it is impractical for China to impose tariffs on an additional 200 billion US dollars in American imports proportionately.

As a result, targeting large and politically influential American industries and companies with huge investments in China is a feasible scheme. This is the principle behind the “qualitative” approach, or namely, the “Precision Strike” in international trade conflicts.

The dynamics undergirding China’s aforementioned practice is the “pressure conductivity,” which starts from US companies in China, to their headquarters in America, then their active lobbies and affiliated associations, and finally to Capitol Hill and the White House.

As such, China may force the Trump Administration to withdraw and reach an accommodation through practicing the art of “asymmetric warfare” on trade.

Trump cannot save the 'American Patient' by compelling the world to take pills

Reviewing the Sino-US economic and trade disputes during the past months, China has always made every effort in maintaining the overall situation of the bilateral ties and especially trade relations, and promoted the consultation in an active, positive and pragmatic manner.

Thus, the two parties once achieved agreements and formulated a clear consultation roadmap and timetable. For example, based on the consensus reached in Washington on May 19, the two sides conducted specific consultations in Beijing in the fields of agriculture and energy in early June, which were generally welcomed by both sides.

They also agreed to conduct specific consultations on the manufacturing and service industries in the near future. China sincerely believes that the previous consultations between them are positive, constructive, and in the interests of the people of both sides.

However, now it is deeply regrettable that the US has been exceptionally capricious and has intensified its efforts to provoke a trade war. Under the circumstances, China has to make a strong response. The US is accustomed to holding big sticks to negotiate, but this does not apply to China. This irrational behavior is not conducive to solving any problems.

After all, the substantial problem of the US economy is rooted in its own domestic political, economic and social institutions, rather than the current system of international trade.

In fact, as the largest economy in the world with vested interests, America has drawn resources from every corner of the world since the end of WWII and the establishment of the contemporary political-economic order, through various approaches either legal or illegal, reasonable or unreasonable, “civilized” or seemingly legitimately predatory.

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