Sunday, May 27, 2018

An Analysis On The U.S - China Trade War

Roncevert Ganan Almond, The Diplomat: The U.S.-China Trade War

A simple plan: action, confusion, and retreat

Prior to his invasion of Russia, Napoleon reportedly said: “[M]y campaign plan is a battle, and all my politics is success.” However, following a Pyrrhic victory in Borodino, Napoleon found himself without a plan or success. Not anticipating Tsar Alexander I’s refusal to surrender and General Mikhail Kutuzov’s strategic withdraw from Moscow into the vast Eurasian steppe, the Grande Armée was left exposed and exhausted. With the weight of a Russian winter coming, Napoleon submitted to a confused retreat, ultimately leading to the Little Emperor’s defeat. According to historian John Lewis Gaddis, Napoleon had transgressed Carl von Clausewitz’s maxim on strategy, whereby war must be subordinate to policy. When leaders fall in love with war, making it an end unto itself, the “culminating points of their offensives are self-defeat.”

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WNU Editor: Too early to past judgement on what will be the final outcome in trade talks between China and the U.S.. But I do know that the current trade gap between the U.S. and China is not sustainable in the long run (for the Americans), and I also know that China is not willing to change the current trade arrangement. In this situation the question no longer becomes "will the U.S. make the hard decisions " .... but .... "when will the U.S. curb Chinese imports unilaterally" ..... even if it risks major disruptions in trade patterns.

2 comments:

Anonymous said...

China has been waging war against USA economics for at least 10 years but the USA didn’t know it.

Now it knows it.

The sooner the USA cuts its balance of payments deficit the better. The pain will be intense for many US companies that dove head first into a Chinese bases supply chain. As ZTE shows, whole companies can be shutdown.

China has the most to lose and even better wasn’t expecting Trump to launch a trade war.

jac said...

Most import from China are....American goods subcontracted in China. Well we have to curb...American's companies to change China to other countries as subcontractor. There are plenty: India, Thailand, Vietnam, Indonesia...and so on. We shall still have a trade deficit, but we will not subsidize the Chinese PLA anymore.