Best illustration I have seen of why we are just handing over the economy and being massively outmaneuvered. Xi is touring and opening up trade deals while Trump is golfing and closing ours.
JaceFlores on
I mean I can’t blame people for being enticed by this. Obviously countries should think it through, China has been far from an economic angel, but it makes sense in this current climate why China would be appealing
Secret-Ad-2145 on
I hate this timeline.
justsomen0ob on
I don’t see this working for China. The US and China roughly balance each other out with the US running a massive trade deficit and China running a massive surplus. If Trump succedes in significantly reducing the US trade surplus (by completely fucking the economy), China has to reduce its surplus, or the rest of the world has to absorb it.
So far China has talked about raising domestic consumption, but it hasn’t taking any significant steps to increase it and its trade surplus continues to widen, so I doubt that China will prefer that option. I also doubt that the rest of the world will be able to rapdily raise demand to absorb Chinas surplus in the short term, so they will have to do it by reducing their own manufacturing.
Many countries were already taking action against chinese imports during the Biden administration, so we will probably see much more of that to prevent the decline in manufacturing and we will enter a new age of protectionism.
Negative-General-540 on
China now has about 20% of export surplus that has to go *somewhere*. If it goes nowhere, they are gonna have a pretty bad time, so Xi is going out there to try to open up new market. Makes sense.
5 Comments
Best illustration I have seen of why we are just handing over the economy and being massively outmaneuvered. Xi is touring and opening up trade deals while Trump is golfing and closing ours.
I mean I can’t blame people for being enticed by this. Obviously countries should think it through, China has been far from an economic angel, but it makes sense in this current climate why China would be appealing
I hate this timeline.
I don’t see this working for China. The US and China roughly balance each other out with the US running a massive trade deficit and China running a massive surplus. If Trump succedes in significantly reducing the US trade surplus (by completely fucking the economy), China has to reduce its surplus, or the rest of the world has to absorb it.
So far China has talked about raising domestic consumption, but it hasn’t taking any significant steps to increase it and its trade surplus continues to widen, so I doubt that China will prefer that option. I also doubt that the rest of the world will be able to rapdily raise demand to absorb Chinas surplus in the short term, so they will have to do it by reducing their own manufacturing.
Many countries were already taking action against chinese imports during the Biden administration, so we will probably see much more of that to prevent the decline in manufacturing and we will enter a new age of protectionism.
China now has about 20% of export surplus that has to go *somewhere*. If it goes nowhere, they are gonna have a pretty bad time, so Xi is going out there to try to open up new market. Makes sense.