The USA already lost and lost big. That is why it is desperately using the last resort of starting a new trade war to cripple China. Trump still thinks that the USA is the only destination for Chinese goods and does not realize that China already expanded its market outside of the USA. Agricultural products are no longer going to hold China hostage, as China has already position itself to rely on many sources for food. It is the USA agricultural sector that is being held hostage by China today. And food is a National Security issue for all countries.
Tariffs will only force China to sell more to BRICS and Global South countries, a market out of reach by the USA, even if it manages to lure all manufacturing back to the USA. The USA manufacturers cannot possibly compete outside of the country. And what does that scenario sound for those setting up factories in the USA? Selling to USA citizens alone is not going to solve the problem. USA citizens are no longer the people thought of as having the greatest spending power in the world. That is long gone, and with some USA citizens having to work at two or three jobs to survive, what kind of spending power are left for them?
Anonymous
3 comments:
Good morning All
UAss thought that they are like the PRCs which they could construct a station or make shift hospital in just days ah!
Chinamen with their National Flag and Red banners behind them in any projects and their rallying songs worked 25 hours a day and night.
The Americunts would take years just to built a simple factory.
Played golf and cigars in black holes have their spring, summer, autumn and winter holidays.
Their Logistics strikes every now and then and what's resources they have except arsenals of DEATHS.
Already sloths livings.
Their CON-gress Men and Women and Senile-Nators just marked time and kicked the can further down the road.
Now strike whilst the iron is hot plough as much wealth as possible.
Just say say hot airs only!
Control of raw materials is the most important bargaining chip to hold, in the face of the expectation of a trade war. China had known this was going to happen and it acted with foresight and due diligence, seeking out what is important to control during the last three decades. The USA had been caught sleeping and thinking China has no leverage whatsoever to speak of. Shall we just say that the USA, like Trump, forever thinks that China has no hand to play in global manufacturing? That was a fatal mistake.
Every manufacturing activity starts with having the basic raw materials, which is the most important input in any industry. No use building a factory, knowing production cannot go ahead without the input of raw materials.
What comes to mind in importance is that the basic materials like iron, steel, copper and aluminum are needed in almost anything made, be it cars, planes, solar panels, wind turbines, power generators, electricity transformers, lifts, weapons, household consumer products, building structures and even mobile phones. And we are not even talking about rare earth elements.
China has almost a total grip on all these raw materials, including the refining facilities. How is the USA going to win a trade war with China, knowing China has the upper hand.
China will surely retaliate against the 20% tariffs coming into force in March 4. And it will be a targeted retaliation that is going to hurt the USA in the groin. In fact, an unsolicited retaliation movement will also come from Canada, Mexico and EU. There will be a beautiful sight to behold moving forward. 2025 may see the end of USA's hegemonic power, either an economic collapse or a civil war or revolution when inflation spirals out of control.
Civil war. Let these hillbillies and rednecks annihilate each other. After all, everyone us armed to the teeth. Don't let their problems spill over to the rest of the world. Let's just sit back and watch the fun.
Post a Comment