President Trump's latest tough talking on trade has upset stock markets, angered US allies around the world and even drawn criticism from members of his own party. Whether it represents the start of a global trade war is likely to depend on the reaction from China, which Trump has repeatedly slammed for killing American jobs with its unfair trade practices. The tariffs on US steel and aluminum imports that Trump announced Thursday are "definitely the start of more aggressive trade measures by the Trump administration to protect US industry from what it sees as predatory practices of others," said Scott Kennedy, an expert on the Chinese economy at the Center for Strategic & International Studies in Washington.
China could retaliate by imposing punishing measures of its own on major US exports such as soybeans or airplanes, according to analysts. Or it could put the squeeze on top American companies that do big business in its market, such as Apple (AAPL) and Intel (INTC).
But as the world's biggest exporter, China may choose to keep its response more muted to try to avoid a trade war, and claim the moral high ground as the defender of the global trading system.
"China does not want to see an escalation of tension," said Aidan Yao, senior emerging Asia economist at AXA Investment Managers. "Instead, Beijing wants to manage the relationship."
Beijing's response on Friday was measured in tone. A spokeswoman for China's Foreign Ministry urged the US "to abide by the multilateral trade rules and make contributions to the international trade and economic
"China could retaliate by imposing punishing measures of its own on major US exports such as soybeans or airplanes, according to analysts."
January 10, 2018
"French President Emmanuel Macron floated the prospect of a massive Airbus SE aircraft order at the end of a three-day visit to China, hours after the planemaker had said no new deals came out of the trip.
An aide to Macron said in Beijing Wednesday that the potential sale concerns 184 A320 narrow-body jets for delivery to 13 airlines in 2019 and 2020. While the accord would be worth $18 billion at list prices, it lacks the status of a formal agreement with the agency that approves Chinese aircraft purchases."
China can simply nationalize every US company inside its borders. I have long believed they will either do that or simply copy the US company and then run them out of business Rockefeller style. How do you like them apples?
Forgive my ignorance in this matter, but China holds a significant portion of our debt as treasury securities. Perhaps they reason it's equitable to enjoy a low-tariff status with us due to this fact.
I've never taken an economics course, but I'd be interested in being educated about this by anyone here knowledgeable in this area, since I can't find anything on the internet about it.
Major holders of Treasury Securities in Billions of Dollars as of December 2017:
China, Mainland 1184.9
Cayman Islands 269.9
United Kingdom 250.0
Hong Kong 194.7
Saudi Arabia 147.4
So...china, where the trump crime family relies on chinese licensing schemes to further their sweat shop machinations, and carl ichan a well known predatory capitalist with close ties to the trump crime family, are taking advantage of this latest iteration of a trump wet dream.
BUT...it's gonna be funny watching the idiot american president and his minions forced to walk back this latest bit of infantile international strategy.
Awesome for them! We will use the tariffs to our benefit and help create jobs and China will apparently benefit as well. Win/win for everyone! China won't retaliate in any way other than by words, which is what they are doing. Nobody is stupid enough to think "Hey, we will lose money so let's make policies that will lose us even more money!" The tariffs just reduce their exports but they still make money. China cutting us off from products in retaliation means they lose even more money...lots of it.
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