Snakes are snakes. Would anyone trust a snake even after helping it? China helped the USA during the 2008 financial crisis, but now the snake is biting China from all angles. The lesson has been learned, and China should not be dealing with snakes.
What is even more telling is the other bigger snake probably playing Modi around, now that that bigger snake has no other cards to deal against China. Yes, there is the possibility of Modi running back to the kiss Trump's ass, especially if Trump lowers the 50% tariffs to say 25% or less. Modi will bend over backwards to take the deal. Trump will gloat about the big, beautiful and productive deal with India.
The trap is probably to loosen the leash to allow India to close ranks temporarily with China, to get some Chinese investments to flow into India again to mitigate India's economic problems resulting from an expanding population and its missteps in hijacking or chasing out Chinese investments in the past.
India also needs rare earth supplies from China to resume for its EV, iPhones and manufacturing facilities, which has now been curtailed after the discovery that India had been selling Chinese rare earths under the table to USA military contractors.
India has rare earth ores in abundance (ores are not actually rare, the processed elements are rare) but lacks the mining facilities and the refining logistics to tackle its rare earth shortage. It will take decades and huge investments to build up those facilities, which India is attempting to solve.
Foreign investors are wary of India's bad habit of using retrospective investment and tax laws once such investments start to reap benefits and are not rushing into India to be screwed. Samsung found that out too late and had been slammed with a US$600 fine by the Indians.
Anonymous
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Trump erected tariffs to curtail the import of Chinese goods. But the USA has no facilities to manufacture what it imported from China, which is the whole purpose of having a tariff war. Now, Trump is demanding that China must ship more goods to the USA. What is he talking about?
Clearly, the tariff war against China has failed on all fronts and Trump is clearly very desperate. But, as the horses have already bolted after opening the stable doors, Chinese goods are not heading to USA ports. They are avoiding USA ports for destinations in the Global South and South-East Asia. Trump can now threaten to raise tariffs to 2,000%, not just 200%, to milk China selling to the USA, and it is not going to make things favorable for the USA. All the building of castles in the air about reaping in hundreds of billions in tariffs is not going to happen. China is not even willing to let Trump benefit from the 15% creaming off from the sale of Nvidia H20 chips to China by cutting that off as well.
The USA wants to start a tariff war against China and is getting a real lesson in 'Chinese great wall building' erected' against it instead. The Chinese are great wall builders and no stranger to it, with history on its side in the building of walls. Trump is a wall building wannabe, building his wall against Mexico as thinking that is a real deal. Trump has not even seen or figure out what the Great Wall of China is all about or even managed to climb that in the first place to understand the meaning of building walls. Trump thinks that his big, beautiful and marvelous wall in its Southern border is all there is to it in wall building. He is comparing just apples with oranges in real scale.
Trump is still boasting about having the most destructive card in his hands against China, while farmers are begging for mercy and wanting the Chinese export market back. Sad to say, that is not going to come back for USA farmers. It is gone for good and never going to go back to USA, whatever Trump is trying to boast about the most destructive card he held in his hands.
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