Up to now, the advisors of Trump in the White House, trade hawks like Scott Bessent and Peter Navarro are still claiming that China is still highly dependent on the USA market for its exports and the USA does not depend on the Chinese market, and therefore the USA has the upper hand in any negotiating with China.
These advisors forget that China has the rest of the world market to sell to, while the USA is boxed up selling expensive weapons and no consumer goods to the rest of the world. Yet they are gloating about producing the stuff needed by USA consumers, by luring manufacturing back to the USA and creating jobs in the process, just conjuring up make believe from thin air.
When USA is clearly buying more from China, can the USA be said to be less dependent on China, while China buying less from the USA is deemed to be more dependent on the USA? From this, we can see who depends more on the other. Scott Bessant appears extremely nervous trying to carve out a solid explanation of the warp thinking in a situation that is clearly not to the USA's advantage, claiming that a country in deficit is holding the upper hand while the one in surplus is holding a weaker position. For a person touted to be highly intelligent and experience trying to sell such an argument just boggles the mind.
Right now, every sycophant advisor catering to Trump's tariff war is spouting what Sean Foo calls 'voodoo economics', devoid of reason and just clutching at straws to support their arguments. In ancient China, when eunuchs gave false advice to the emperor to appease and gain merit from the emperor, it often leads to disaster. It is happening in the USA now.
China exported US$500 billion worth of goods to the USA, or about 2.9% of its GDP, which is growing at 5% per annum. Will that 2.9% loss lead to the collapse of China? Bear in mind that some of the US$500 billion exports to USA are generated by USA companies manufacturing in China as well. Apple and Tesla are examples, and they will suffer too.
Anonymous
6 comments:
Scott Bessent appeared extremely nervous and stammering at times when answering questions on the tariff war. This shows that his arguments are flimsy and full of flaws at best and shows that the USA is not going to win easily the tariff war against China as he had earlier gloated.
But the White House bimbo spokesperson still had the audacity to claim about so much winning in every policy pushed out by the Trump administration. She is such a prolific liar but completely exposed when answering difficult questions posed by Journalists by avoiding them with vague template replies that Trump is looking into it.
Why is Trump now pulling back and exempting tariffs on laptop computers and electronic equipment made in China and other countries under his tariffs? These are also competing with USA manufacturers if I am not wrong. The main reason trotted out was that they now know that such tariffs are also punishing Apple and other USA companies that have manufacturing in China, and all other countries under reciprocal tariffs. Of course, China is at the forefront of such exports to the USA besides some others, though not at the same level.
But taking the issue further, in my personal opinion, I do wonder whether this has anything to do with the banning of critical rare earth elements by China, which is putting a strain on USA production, with competing demands from the USA military as well. Bear in mind that these are quite high value exports coming into the USA from China, not the toys and clothing, and has a high bearing on the trade surplus that China is reaping. Little by little, the shit is moving nearer to the fan, and Trump's economic advisors like Pete Navarro and Scott Bessent are finding out that some things are not what they just see on the surface. This is now a highly intricately woven global economy and is not within the one size fits all solution.
The Trump administration is tying itself up in knots and now not knowing how to untie them. Slowly, we are going to see U-turns and backtracking, necessitating the generating of lies to cover their failures. It is turning into a comedy of errors. Enjoy the fun!
Someone just blinked over the tariff war, but it was not China. Xi did not go to Washington to kiss Trump's arse, yet Trump is already removing his added tariffs on laptops and electronic equipment from China and everyone else. The world should take the same stand against the USA bully and not cave in, taking the cue from China. The USA needs China and the rest of the world more than what the world needs from USA. The US$ is toxic and the world does not need a weaponized currency that could be used against them next.
Trump himself will cave in when reality hits, like the pressure from USA companies hitting him like a bolt of lightning to wake him up now. Many companies will face bankruptcy operating in China and USA and needing Chinese parts and raw materials to make their products. Any increase in tariffs by doubling their price is insane. So, will it be spun into so much winning already that Trump is very generous to grant relief to China? Or should we say that Trump is now caving in to China as many have been saying.
I am waiting to hear who among the 50 touted to be queuing up to kiss Trump's arse are going to do it, besides Taiwan. Is Taiwan representing the 50 touted so far, just like the two thousand surveyed in ASEAN as representing all the more than 600 million in ASEAN who wants the USA to be around ASEAN instead of China.
It will also be interesting to see how the negotiations are to be conducted with the Penguins and seals on a remote island, if they are also among the 50 countries waiting to kiss Trump's arse. The USA will probably need Penguin from the Batman movie to come out to do the negotiating, LOL.
I think the 'kiss my arse' comment is putting countries off, not to be seen as dogs kissing their master's bottom or even licking it. Some are probably ashamed to be designated as arse kissers and being humiliated like animals.
According to Trump's bimbo propaganda spokesperson, seventy-five countries are now queuing up to kiss Trump's arse.
Chinese manufacturers are now going on Tik Tok advising consumers to bypass the importers and retailers in the USA and ordering direct from factories in China at factory prices. Wonder how this will work out, cutting out the middlemen, the ones that are making the most profit by gouging besides the brand owners.
The Chinese manufacturing sector is now exposing the wide scam about demonizing Chinese products as junk, and are educating consumers that the products they thought were made in Italy or USA were actually not the truth, when the reality is that they were all made in China just without labels stitched on, sent to Italy or USA factories, stuck with their logo and passed on as being made in Italy or USA. More than 80% of Chinese manufacturers are doing that on behalf of top end global names.
Wonder how consumers are going to react.
That is why they are banning Tik Tok, with top brands getting hurt very badly if this continues.
Post a Comment