antiterror13
Brigadier
do you really understand how the tariff works? ... just wondering
There will be no single dollar extracted from Chinese exporters .. all $75B will be paid by Americans consumers or American corporate profits
Trade War with China
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do you really understand how the tariff works? ... just wondering
There will be no single dollar extracted from Chinese exporters .. all $75B will be paid by Americans consumers or American corporate profits
Come on ... others have already demonstrated such extreme statements are not true - just like those of Trump aren't. The fact that the Yuan depreciated in reaction tells us that China is paying part of the tariffs.
manqiangrexue
Brigadier
If it's that simple, then why is the US against China depreciating the yuan? After all, they want China to pay for them, not American consumers, right? They should encourage depreciation, right?
Quickie
Colonel
That's just speculative volatility in reaction to the threat. The Yuan was volatile in the beginning but has basically remained unchanged with the 10% tariffs on 200 billion of goods.
But i thought, Mnuchin and Lightizer were trying hard to force china for a stable YUAN that may not be depreciated so as to soften the tariff pain?
That’s a weirdly phrased question.
Political power comes from a longstanding concept of a nation state. Competence is the main factor in tempering it. I assume, if a SOE did something stupid, Beijing would just drop it and/or disavow the connections, like what Washington is doing with Boeing now.
Rolling back subsidies would give CPC more money to invest in another sector, so it depends on how that money is used.
But generally it will only affect that person who is in charge of deciding that thing you know? If they’re incompetent, the rest of the administration will fire them or refuse to renew their position.
As for competition, it depends on what it is about. Obviously competing with heavily subsidized companies without subsidies of their own is difficult, but given the different tech base, there’s a lot of variables. It could either go like Huawei vs US 5G companies, where Huawei utterly dominates, like Chinese PC companies vs American ones, where it’s sort of equal, or go like Chinese farming vs US farming, where the latter completely dominates.
We can discuss the underlying reasons for the depriciation, but the numbers are as follows:
6.31 Yuan to USD on 23rd March 2018 (first China targeted tariffs)
6.77 Yuan to USD on 7th May 2019
The amount of depreciation so far was likely market driven for Chinese manufacturing to remain competitive. I suspect the increase in deficit was because it made other nontariffed sectors even more competitive. China is likely not manipulating (though Impossible to prove either way) its currency. To transition to a China sized consumption led economy, we need appreciation (Plaza Accord) and an increasing role of the yuan as a challenger to the dollar as a reserve currency. It’s not easy to do this while trying to keep manufacturing afloat and laborers happy unless you can AI the crap out of labor and screw the rest of the third world labor force.
The CCP wants it all and I will be very amazed if they can pull it off. I can see it happening though.
You gotta know that Dollar being the reserve currency hurts the developing world living standards, but that’s how it is. Everyone is forced to choose to become a factory of the West and eventually make it or end up a nonsense economy.
The CCP wants it all and I will be very amazed if they can pull it off. I can see it happening though.
You gotta know that Dollar being the reserve currency hurts the developing world living standards, but that’s how it is. Everyone is forced to choose to become a factory of the West and eventually make it or end up a nonsense economy.
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Quickie
Colonel
6.31 Yuan is on the high end of its historical value. When Trump was elected, the value of Yuan was 6.80. With the 10% tariffs, the value of Yuan did not shoot past 7.00 as most analysts had predicted. It stabilized at around 6.6x Yuan/USD before this new round of tariff threat.
I agree to disagree then. I was never referencing any "deep state" but rather factions of the US elite particularly big money special interests who have much in common with Trump's personal interests, value system, and even worldview. Again, their foreign (including trade) policy behavior has as much to do with their self-serving domestic agenda as their international agenda, if not primarily so.
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