As Trade War Intensifies, China Moves to Bolster Its Economy

We should not forget one thing: that China's well-off class is already more than 300 M educated people, the equivalent of the entire U.S. population. What that means is that a really big number of potential high class consumers are entering the market and buying for the moment mostly European but ready to buy their own high end quality products which are clearly in the sights of the authorities. And China has the power both intellectual and political to proceed to changes of that nature.

While America has an opportunity to get out of old industries and advance people's education but people choose to cling to past glories, China has been using every crisis to its advantage. Team Obama understood that by seeing the Chinese compound word "danger + opportunity" and telling American people not to let crises go to waste. Alas, the sheep and lemmings chose the GOP propaganda instead and gave us Trump. After 8 years of obstruction, suddenly "deficits don't matter anymore." But instead of investing in infrastructures, which are old and crumbling, let alone fit for the 21st Century and beyond, GOP and Trump are doing the "one for you, a million for me" tax cut cut cut plan. And screw the blue states while they are at it. Of course, when the sugar high is over, the Dems will come in and fix the darn thing. In the mean time, China is going to take the spoil from American isolationism. This is not to praise the opponent and trash the home team. And certainly China is a lying cheating gang itself. And plenty of state control and corruptions. Still, it is pushing its people forward. True, it has made mistakes and it is inhuman at times. However, it is taking the short term pain to deal with its future. And America?

My Dear Americans: This is the Complete Pictures and the reason why there will be no trade deal, I read both all American Media (CNN and Fox) and Chinese Mainstream media, and I would like to share a few reasons that there would likely most likely would be No Deal for this one, even for 2 or three years. 1) While it is true the deficit of bilateral trade of the physical goods is $375B, the annual sale of non-physical goods is in black $70 for services and $25 Billion for Tourism and Students minimum for Chinese side. 2) US companies sell $400B annually in China versus minimum amount the other way around. 3) The most important factor: US corporation usually got 20%-30% profit from the good sell to China (Regardless the origin of manufacture), versus 5% the other way around. 4) Tech transfer is consensus based, no one put up a cannon forced any tech transfer; in addition, every country (steal/used) other’s technology during their raise, including US. 4) Most believe the only goal of US is to containment, which is why US banned Huawei and ZTE, which is entirely private owned companies. Furthermore, they are the true flag carrier of free trade, since they didn’t ban iPhone, (yet). Sorry to say. Unless your goal is just post tariff on China, you probably won't achieve much beyond that, at least from trade deal's prospective. (The popular website in China are ifeng, sina, sohu, if you don't believe me use google translate and check.)

From Kudlow on up this group thinks they're the gift from on high on the world economy. They could push China over the brink with their trade war dragging the world into the next serious recession. Who thinks this group has the intellect and skill necessary to pull off this ridiculous method of trade(hit over head,demand concessions)?

Oh, so China is a country addicted to debt. They might call in some of the trillion or two that America owes them. We could simply print up a few shiploads of dollars and pay up. Printing doesn't cost much and we could make them pay for the shipping like we're making Mexico pay for our wall.

This is week that I really focused on issues on China, and I think this is the most important one that needs to be considered. Because of President Trump increasing tariff on China and wishing to cut our taxes even further, the pressure on China is increasing. However, China being able to bolster their economy is a great news for them and for U.S. The reason is, I believe, the competition in economy will give benefit to both sides of the trading partners. As mentioned in this article, the Chinese economy is slowly creeping upward to better side. Because Chinese economy was fluctuating between the safe zone and danger zone of debt, the news of China being able to prosper is a great news. However, the news that they are focusing on their military is a bit skeptical for me because of the fact that we do not know the cause of the Chinese economic boost-- either because of U.S increased tariff on China or because of they are able to use these money to empower their military. That question is still on the policy agenda. For my personal opinion, I believe Chinese improvement in economy is a great opportunity for U.S to have better deals with them.

China has a card/s that the US under Trump does not. The Chinese peoples are used to severe deprivations. Its in their culture. They know how to survive on a lot less then we do. Their reliance on eating nearly every animal, fish and plant in the food chain is a huge boost. While we Americans are lost without our processed foods, many of which are now being processed in China! We're shipping pigs and chickens to China for processing that was once done domestically. And we eat a woefully limited number of animal parts and an even lesser number of plant products. What will we do when our processed foods from China are now costing 2-3x's more? What will Trumps base do when their coveted breakfast, lunch and dinner processed meats are cutting into their budgets? When their 1-2 daily trips to LucyBells's Diner to gather to sit and blame Democrats and Socialists - and that damn HRC - for all their woes, starts to cost several bucks more a day? Americans don't do deprivation well at all. This ain't the 30's and 40's...! Those courageous and underfed Americans are long gone. But the Chinese...they know deprivation. Even their rising middle-class are versed in the skills of shortages. My money is on China winning this...in the long term. After all, they still have the factories...you know, the ones Trump promised would litter our landscape once he won. They just need to shift their attentions to other markets and sell...which they do better then us - shift gears and direction.

"China is playing a difficult game. It must deal with its weakening economy without worsening its onerous debt problems." China's economy is growing exponentially (and three times faster than ours), doubling every ten years, along with wages. That''s hardly 'weakening'. It's debt burden is half as onerous as ours. The US and China have almost identical debt-to-GDP ratios, but China's debt is entirely domestic, its asset backing is excellent and, as noted above, its fast-growing economy eats debt three times faster than ours.

" Free Trade " means different things to different countries. Mercantilists, e.g. China, view it as country against country in a struggle for national power at the expense of other participants. Others see " Free Trade " as an international market of competing commercial entities that participate without subsidization of national governments. It was always a mistake to allow an economy of several hundred billion very low wage workers with a significant degree of central government direction, i.e. China, into a global system ( WTO ) of competition against the very high wage work forces of North America and Europe. Obvious results are labor transfers from high wage to low wage locales and the compression of wage growth of labor in high wage countries. An inevitable consequence is wealth increase for finance sectors in parallel with wage stagnation in labor sectors. Trump is indeed correct to put pressure on China, but misses an opportunity to form a coalition with the traditional allies of Europe and North America.

Larry K the chief economist of the USA who is TV presenter and not a trained Economist says ‘the Chinese economy looks terrible’ Yes it is growing at 2-3x the rate of the USA, average workers have enjoyed 10% annual increases for decade vs virtually zero for USA workers and public debt as % of GDP is HALF that of the USA. Yeah terrible

"Larry Kudlow, the director of President Trump’s National Economic Council" Kudlow is also known to invite a white nationalist publisher to his birthday party recently...  And we're banking on Larry to strengthen our strategic economic policy on tariffs with China. Oh, Larry said he didn't know the person was a who he was, or something vague like that. Wow! What a deep bench we have. China by the way has a billion people, been around for thousands of years, and really is just getting started to become a world economic power. They're in no rush and a few billion in tariffs means little to them.

And how much is the US's debts?

Quackery at home, the monkeys are in charge, and this may lead to a global meltdown. Global problems are only bad for people on Earth. Since the United States government is lost in space, we should do fine.

‘Trade wars are good...and easy to win’

I'm a practical guy and don't fall for headlines and hyperbole without facts. I think China is an amazing country with great potential. But they are following a pattern. The Soviet Union fell because of an unsustainable military budget and lack of diverse and sophisticated capital markets. Japan wanted to dominate global commerce but the same thing happened. China is trying to be both things at once, with the ego-driven idea that a centralized government can fuel their plans. The reality is they are spending massive amounts on military projects, employing massive numbers of people. They created enormous "companies" to produce basic products that also depend on massive government support/debt and massive numbers of people. For the last several years, I've felt that their entire system is a house of cards. They prop up equity markets / currencies, and warehouse excess capacity. The most likely scenario for this huge bubble to pop is a global economic recession (I think they can hold things together during the current trade wars). The rural communities are already restless. As industries fold (more than a few have), unemployed workers stop sending money home. I need to learn more about their debt problem, but this article is one of many that address the pattern of national banks loaning vast sums on projects that make no economic sense. Consider the fall of the Soviet Union but on a China scale.

Farmers and the agriculture-business sector of our nation will rue the day -- millions already do -- when they supported President Pathological.

Embarking on a trade war is is a seriously risky gamble. The trade-off's involved in evaluating possible consequences are extremely complicated, requiring extensive knowledge and judgment. Donald Trump is not the right president for making these decisions.

Beware of this Trump administration, utterly incompetent and corrupt, starting something than they never control and could affect the whole world economies...! Those people does not even understand what they are doing; look at the situation with NK!!!

I disagree with almost everything Trump says and does, but on China he is correct. China imposes tariffs on our foods, and engages in cyber-warfare against us (so does Russia). It's time for them to be taken down a peg or a hundred.

Why do I keep thinking I'm reading a Tom Clancy novel? The growing number of unintended consequences in this 'Trade War' are mounting.