A cornered hungry Tiger is far more dangerous than one who is being fed scraps. A civil war over unemployment in China has a nice sound to it, but the reality would be the radical left military take over of the country and kicking Xi and the civilians out. If Trump can reel China back to a fairer shake for our businesses, while not pushing them into a desperate military controlled one, like WWll Japan, it would be preferable to world war three!
However, I don't think a $400 billion/year trade surplus & >$225 billion IP/tech can be considered scraps. America will never get a fair shake out of China, because China is pursuing power. Power is zero sum.
The whole point is to re-shore industry and do it now due to the threat of tariffs. I guess you haven't heard of all the announced investments? Perhaps you prefer your goods to be produced by slave labor?
Yes, the whole point is to reshore industry—I wrote the book called 'Reshore' that's endorsed by Peter Navarro & Steve Bannon.
The problem here is that China's manufacturing cost advantage is 40 - 60% across most industries. This means that a 30% tariff is NOT HIGH ENOUGH to promote reshoring.
It is high enough to divest from China & move to India—which is what Apple & other tech companies are doing.
The tariffs need to be high & stable to bring the factories back home to America, where they belong. Trump shouldn't have walked this back because the plan was working. This just delays & undermines his own agenda.
A cornered hungry Tiger is far more dangerous than one who is being fed scraps. A civil war over unemployment in China has a nice sound to it, but the reality would be the radical left military take over of the country and kicking Xi and the civilians out. If Trump can reel China back to a fairer shake for our businesses, while not pushing them into a desperate military controlled one, like WWll Japan, it would be preferable to world war three!
This is an intelligent comment.
However, I don't think a $400 billion/year trade surplus & >$225 billion IP/tech can be considered scraps. America will never get a fair shake out of China, because China is pursuing power. Power is zero sum.
The whole point is to re-shore industry and do it now due to the threat of tariffs. I guess you haven't heard of all the announced investments? Perhaps you prefer your goods to be produced by slave labor?
Yes, the whole point is to reshore industry—I wrote the book called 'Reshore' that's endorsed by Peter Navarro & Steve Bannon.
The problem here is that China's manufacturing cost advantage is 40 - 60% across most industries. This means that a 30% tariff is NOT HIGH ENOUGH to promote reshoring.
It is high enough to divest from China & move to India—which is what Apple & other tech companies are doing.
The tariffs need to be high & stable to bring the factories back home to America, where they belong. Trump shouldn't have walked this back because the plan was working. This just delays & undermines his own agenda.