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.
Anonymous
2 comments:
Marco Rubio, the shameless USA Secretary of State calls North Korea a 'Rogue State', when the USA itself is the unrivalled champion of all rogue states. Wang Yi, the Chinese Foreign Minister told Rubio to behave himself earlier on. Children needs to be put into their correct place and taught how to behave.
Has North Korea announced its plans to seize sovereign countries or impose tariffs on others? Has North Korea been trying to set up military bases all around the world? Has North Korea threatened any other country other than the South Koreans that had been trying to provoke it with military exercises with the USA and Japan close to its shores. Firing of rockets is no provocation against South Korea or Japan as gloated and only a response to those military exercises. China is testing rockets as well, so does India and so does Elon Musk. Are they threatening anyone or any country directly?
The sooner a new global currency and financial system is set up, the better for the world. China is not waiting for the USA to decouple from it. China wants a faster decoupling more than the USA.
China is looking at the evolving BRICS and Global South market more importantly and has already done its homework and is prepared to put the USA market behind it, knowing that USA consumers are losing the ability to afford the kind of spending power that was touted in the past.
The USA manufacturers on the other hand is not able to access the BRICS and Global South market under competition, even if the USA were to force manufacturing back to the USA to produce goods. So far, despite all the posturing, we do not see a rush by manufacturers to move back to the USA.
Onshoring is not going to work when the USA is becoming a closed country that is going to provide a market that is just a fraction of BRICS and the Global South combined. The gloating that only USA consumers are rich enough to afford the kind of spending power that other country's citizens cannot afford no longer holds water today, especially when being revealed by Rednote users when comparing living standards and living costs.
Post a Comment