Quote:
Originally Posted by VRPdommy
I do not totally 'disagree' with trumps stance with China trade.
But he is selling us short in a long term basis to have a deal he can claim for election.
While we will see no great improvement in trade, the rules will have us locked-in for some time to come without agreement on intellectual property and how much tech know-how our companies must give-up to China to sell there.
That has always been the core issues raise by US biz. Funny they never make headlines.
BAD DEAL.
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a country doesn't get big by trying to make another country smaller.
there are problems with china and not only in the USA. but the question is how to solve these problems JOINTLY.
the biggest problem is that china has developed into the strongest economic power in the world with unfair means. the purchasing power that china has achieved through this has become indispensable. if you destroy china's economy, you also destroy its purchasing power, which keeps the whole global game running.
it's like having 10 cows in your barn. one of the cows secretly stole the other's food and is the only one that gives enough milk. you can slaughter this one cow now but it will take years for the remaining cows to replace the lack of milk.
a country can be either an important customer or an important supplier. in the case of china, however, both are true.
let's take boeing as an example. if the approx. 30% of a boeing machine, which is manufactured directly or indirectly by chinese suppliers, were replaced by domestic products, an aircraft would end up being twice as expensive to sell.
as a result, boeing would no longer be internationally competitive and even if the domestic airlines continued to buy the expensive boeings, this would not only have an effect on flight prices but on much more, such as the transport of goods in air traffic.
this spiral would go all the way to the bakery at the corner and make any existing product more expensive.
expensive products, however, reduce the quality of life of each individual. especially for those at the lower end of the food chain. so those who can already afford little can then afford even less.
economy is like playing chess. the chess mat is based on a move that was made a hundred moves ago.
therefore it is not only highly complicated for people who understand these laws and connections - it is also IMPOSSIBLE that economic laymen will ever understand it.