It's been a few weeks since Donald Trump fired the opening salvo in a trade war with China, slapping tariffs on a range of Chinese-made goods.
Beijing retaliated with tariffs of its own — and since then, the rhetoric on both sides has been unrepentant.
Much of the focus has been on nervous financial markets, and how the war could affect the fortunes of US farmers and manufacturers — but how do things look from China's side?
Is the trade war the biggest threat to China's economy, or does the country have more pressing problems — like its massive debt?
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WNU Editor: China's trade surpluses with the U.S. were (and are) helpful to Beijing in managing its debt. But the trade war is jeopardizing everything, and China is now facing the very real possibility that the era of massive economic growth that it has experienced for two decades is now coming to an end.
4 comments:
And don't forget the thousands (not hundreds, but thousands) of skyscrapers that were built 10-20 years ago in the China gold rush days...but oh yeah any building codes were skipped. These buildings need to be condemned and torn down. The visuals will be the final kick those people who are still dreaming about a Chinese century need to wake up. It's over. Difficulty will be accepting it. They haven't even realised it yet. The debt. The enemies they made. Encircled. Trade war. Aging population. Civil unrest due to the 1984 style techniques and social control. You already have brain drain and capital drain. This ship is going down faster than the Titanic
A war/invasion of Taiwan is what the Chinese leadership will have to do next. But this gives up their north Korea cards to some extent. Bad play, so much wisdom, such ancient civilisation lol :)
China based it's economic model on a position that is not and never was sustainable. When someone does This, they should not expect any sympathy.
This does sort of pop the myth of the Chinese being brilliant long range strategists. I'm reminded of the saying "the emperor has no clothes."
Faced with a failing economy and a trade war they can't win the only other option for them may be war. While they could win a conventional war against the US and probably would, the cost would likely be enormous.
All in all they are not in a good situation. The first step to fixing it would be to negotiate in good faith with the US for an equitable trade arrangement. When in a hole, the first thing to do is STOP DIGGING!!
And where might this conventional war the Chinese could win take place, pray tell?
Now for the lottery. Will I be able to find three turtles with yellow green checkerboard toenails located on which of 8 squares on the I-10 3 miles east of Banning, CA and pass or will I flub and be forced to another scrutiny consisting of automobiles with flat left rear tyres on the westbound I-8 7 miles south of the landfill near the Mexico/US border on 6 squares? OR, best yet, will I escape the robot's scrutiny?
Only the Shadow knows. Deep breath. Anti-anxiety tablet swallowed.......
Visual testing update.
Drumroll............I passed!!!!!!!!!!! Another robot defeated!!!!!!!!!!!!
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