China's decoupling from the USA is no longer a choice but a necessity, in order to avoid continued bullying by the USA. Enough is enough and the USA is not the only market for Chinese products. Just losing a little in the short term and reaping the benefits over the longer term is what we call patience.
China is not that short sighted in looking at developments and where it will lead to. Five thousand years of history, civil wars, uprising, floods, earthquakes, foreign subterfuge and coping with the rise and fall of dynasties did not disintegrate China. What is a little trade war? The Chinese people have gone through more serious hardships for centuries and being humiliated before and will not bow down to bullying.
China must dig in, tit for tat in tariff hiking. The Chinese Government's response had been calculated not to affect citizen's cost of living too radically. Looking for alternatives and getting hold of them first is very important. Trying to act tough without getting the base ready is a big mistake. Moreover, Chinese citizens no longer depend largely on expensive imports from the USA, whether in agricultural produce, EVs and batteries, essential minerals, cheap energy and availability of enormous amount of steel and aluminum. In fact, deflation has long been considered a problem for China by the West, and a little inflation is not going to hurt them that radically. I would, feeling ashamed to say this with no clout, tell the Chinese to 'hang tough' and fight the bully.
The whole Global South is thankful that China is exporting deflation with cheap products, while the USA is exporting inflation with its money printing. The USA wants the whole world to continue to fund its deficit spending, and to support its uncompetitive industries and even being forced to buy its expensive products. That has to end.
As I said before, China is blessed with a huge consumer market and a powerful industrial base. Domestic consumption is a factor that is keeping China chugging along. Those tariffs are hurting USA investments all over the world, and China knows that for a fact. The tariffs hurt not only Chinese manufacturers, but allies and USA companies overseas exporting to the USA, which may force them to relocate back to the USA. But what about being able to compete on markets outside the USA? Why isn't Apple moving back to USA instead of looking towards India for example?
Anonymous
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China must continue to develop its domestic demand, which is very important move in the face of external threats, which may come at any time. Trump's tariffs are one example of such external threat that China must keep planning to overcome and not wait for the event to take place before it happens. Thankfully, China is ready this time and already well prepared for it.
Having said that, China is also doing right in upgrading and increasing its military spending. Just treat those howling and fabrication by others regarding China's increase military budget and consider them as mere irritants or noises. China's action is for its own protection which it needs, not to cater to what others wants to force China to do to suit their agenda. Whatever military alliances China is forging has no basis for others to complain about. Not with Russia, not with ASEAN, not with the Pacific Islands. Chinese Defense Minister, Dong Jun, is visiting Vietnam to enhance defense ties further, his second visit so far.
The USA and the West can keep speculating and downsizing China's weapon system developments, fighter jets and aircraft carriers, calling them junks. If they are junks, why bother with them, am I right? Without the usual spying ability resulting from China's cutting off Western spying with its 5G and dismantling of Western loopholes using Western apps, the West is now using speculation when talking about Chinese fighter jets and aircraft carriers, by just using satellite images to cull their information.
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