China thinks long term, prepares for the long term and works for the long term. That means covering all angles - leveraging on the past, planning for the present and preparing for the future.
China remembers the century of humiliation and has learnt from it not to remain weak as before. China in its present state lifted more than eight hundred million of its 1.4 billion population out of poverty, adding a big boost to its domestic demand with the added spending power and powering along with its manufacturing domination. China knows that its future direction is de-coupling completely from the USA, which is the best bet for its smooth progress and is definitely serious about it.
China is telling the USA 'We don't care' talking about the tariff war and planning to fight to the very end. China is prepared to sacrifice the 15% of its exports to the USA, out of a total of US$3.6 trillion globally, if the worst happens. Will China collapse because of that? Some morons have been talking about China's collapse for more than 20 years and people are tired of it. Even Russia is standing tall in the face of a collective effort of more than 32 countries trying to bring it down. Did Russia collapse? Or for a wider comparison, did Cuba, North Korea, Iran or Venezuela collapse despite all the sanctions imposed, some for half a century. Some, like North Korea and Iran have even grown stronger.
Sanctions have been rendered ineffective. Tariffs will backfire and also be rendered ineffective as countries find alternatives to trade among themselves. As many have already been saying, the USA is not the only market for others to trade with. That is already an outdated mindset.
Anonymous
2 comments:
Before negotiating, China should raise its tariffs to 245% against the USA as well, to match the USA, so that it has a big margin to negotiate. This is what Trump is trying to do. Trump is raising tariffs to the moon and that gives him room to negotiate, just like going to the market to bargain over the price of fish and vegetables. It must be Trump's tactic in his 'Art of the Deal'.
China already raised to 245% the next day after Trump did.
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