Do not be taken aback by Trump's boast about China facing a 55% tariff, while only erecting a 10% tariff against USA imports into China. That sounds like China is caving in. The reality is that whether it is a 30% tariff now, or a 55% tariff going forward, Chinese manufacturers have already been actively found new markets for their products - a 20% increase to ASEAN, with Indonesia taking the cake with a 36% surge. Just a matter of weeks is truly encouraging for Chinese manufacturers. They are brushing aside the USA market for sure.
What is more realistic going forward is whether the 55% tariffs will encourage more Chinese manufacturers to sell once again to retailers in USA or is going to make the position even worse. I would bet on the latter. Which means that there will be more empty shelves in the coming months, with new orders by retailers like Walmart and Target still falling. What is in it for the Trump touting about his win in a 55% tariff against China's 10%? It means little and China is just allowing him to let off hot air to his MAGA base claiming that he is winning.
In the face of Trump spinning as reported on Channel News America, China has not spoken a word about any deal being made, only indicating that there is now a channel for further co-operation with the USA. Nothing about releasing rare earth in abundance or caring to comment about the 55% tariffs. What is there to talk about when China is ready for real decoupling with the USA. Even if the tariffs were to be raised to 1,000%, China cares two hoots.
Anonymous
As they say silence is golden. China knows that frivolous claims on the media is not going to do much good, going up against the biggest propaganda machine in the world. China just let Trump, and his sycophants make all the noises and hype up all the claims of success. The whole world knows that they can only believe the final word from Xi, not the propaganda espoused by the MSM and the Trump administration.
ReplyDeleteChinese leaders do not basically like to shout their mouths off and be seen as just megaphones blasting loudly inside an echo chamber. Chinese leaders and their spokespersons have always been seen to be truthful, calm, careful with their words and avoiding boastful chest beating. They always try to avoid having to walk back on what they said, a shame they do not take lightly.
Asians generally wants to avoid shame: a trait not lost on those who takes the trouble to study Asian characteristics throughout history. The Japanese, in the past, even equate shame as something worse than dying, and some have chosen 'hara kiri' or self-immolation, as a way out of their shame. Compare that with USA leaders shaming themselves every day with atrocious and frivolous outburst, thinking that as a way to boost their ego. How sad.
Except one Asian country to the east of Pakistan.
DeleteEmpty vessels make the loudest noise!
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