Tariff war - China GDP 5%, US 1.9%. China loses, US wins?

Every trade deal is a loss to China, but who is suffering more of the consequences where it matters? More than 250 USA farmers have gone belly up since the trade war started, without the Chinese market for soya beans and corn. USA tech giants and military contractors are stifled without Chinese rare earth magnets. Now the USA, Australia, Japan and India are forming the Rare Earth Alliance to counter China. With so much winning in the trade war, why is that necessary? Everyone knows that rare earths are everywhere, but trying to work out the problems from scratch is just building castle' in the air. Where are the existing refining facilities, the really big ones for making all the magnets to satisfy the demand? Who is going to sink in all the funding for such a setup? Enough said!

If China has suffered so much loss, why is Trump begging China to buy more soya beans and demanding China to sell more rare earth magnets to USA and the West? Why are the USA soya bean farmers so desperate trying to sell their produce hiding behind Brazil and Argentina as their source of such soya beans and getting caught? Why are other countries being forced to resell rare earth magnets sourced from China to the desperate USA and also getting caught by China, namely South Korea and India, which resulted in China tightening the sanctions against them as well. India is caught in the crossfire and now not knowing how to navigate its political compass. Modi is telling the Indians not to depend on foreign goods in the face of USA sanctions. Good for India waking up.

If China has indeed been suffering all the losses over the trade war, shouldn't its GDP growth be affected massively? China's GDP growth is still expected to grow between 3.95% to 5% depending on different sources looking at the situation. At the lower end, it is still twice the growth rate of the USA at 1.9%. So, who is losing and who is still winning, despite the gloom and doom regarding China always being on the losing end on every front?


Anonymous