Tariff War - Business as usual in China

The products that China can sell in USA are still the same in profitability, the same in cost of production, the same wages paid to workers (or even no wages needed with factories totally automated), the same raw materials that China has already cornered and in control. USA importers or consumers are factually paying for the tariffs, but their leaders are still imagining they are not eating those tariffs, even though Chinese manufacturers are not paying them. Can somebody ask the USA pretenders who pays those tariffs?

Meanwhile, the peasants in China still carry on with enjoying their life of sufficiency, cheap in paying for everything, plenty of savings left that will not be used to help in the buying of Treasuries for sure. Why lend money to rich pretenders to buy Chinese goods and yet getting demonized?

But the show must go on. Some social media sites still talking about the collapse of China coming soon, as if twenty years of harping is not enough. Some social media sites still talking about Evergrande with its massive debts that will collapse the Chinese economy, like the property crash in the USA's housing market in 2008. A few hundred million is just a drop in the bucket in relation to the Chinese GDP, and China is not going to collapse. Moreover, China has already taken steps to prevent a meltdown in the real estate sector long ago, which is why so much state investment fund is now available in subsidizing other growth sectors like semiconductors and renewable energy. China is not throwing good money after bad to rescue the real estate sector, a step many foreign investors are hoping but which did not happen. Lots of foreign investors lost their pants in the real estate sector betting on a bailout by the Chinese Government. Never bet against China, nor mess with China's economy. Scott Bessant found that out as fund manager for George Soros trying to bring down the Hong Kong financial system years ago and suffered heavy losses.


Anonymous