Trump on his first day signed an executive order giving Tik Tok 75 days (or 90 days?) to agree with Trump's 50% venture or be sold to a USA entity, or else he warned he will use tariffs to punish Beijing if it does not approve the deal. Tik Tok should just stop operation in USA after the end of its 90 days reprieve rather than drag this fiasco on and on.
Everything is now tied to tariffs, a problem-solving tool that Trump is using to punish those who do not follow his wishes. Trump thinks that the threat of tariff is going to make China bend on its knees and allow Tik Tok to be sold or be controlled by the USA Government. Let us wait and see how those tariffs that he gloated about will do to the USA's own citizens first. Moreover, many Tik Tok refugees are saying they will not go back to Tik Tok, perhaps knowing that the reprieve is just a temporary stance and is not doing anything positive.
China seems more eager to de-decouple from the USA than the other way round. China is no longer fooling around and has worked out its strategy to counter the USA's actions. China's long term strategic priority is leveraging on BRICS and the Global South, distancing its relations with the USA, which is becoming more and more apparent.
Anonymous
3 comments:
China is more well prepared for a trade war escalation by Trump this time around. China is even more prepared to counter Trump's tariffs over Tik Tok sale.
At the start of Trump's trade war in 2016, China did not have the advantage of having built up full economic relations with countries inside BRICS and having the Global South's confidence in their relationship with China. Now it is a different picture altogether. The USA is more isolated, its influence substantially reduced in the Global South.
The Mafia behavior of the USA is putting off more countries and even the threat by Trump of sanctions against those trying to distance themselves from using more of the US$ is falling on deaf ears. Poorer countries that have little to export to the USA have little to fear in terms of tariffs. More industrialized countries have BRICS countries to absorb their produce as the USA is not the only market that they can trade with.
The USA is nearing the end of its tethers. Sanctions are not working; trade wars are not working as well and so will tariffs be falling into the same malaise.
China has a complete supply chain for everything the world needs. There is no need to trade with the Americans at all.
Let them isolate themselves and starve. Oh, correction, they can eat the only produce they make: their paper money. Great source of fibre and they'll never get constipation.
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