Berlin bolster. Premier Li Keqiang and Chancellor Angela Merkel met in Berlin this week to discuss trade, at a time when both sides have been hit by U.S. tax hikes. In a move viewed as a ploy to gain allies against Washington as the trade war ensues, Beijing granted German chemical manufacturer BASF permission to build a $10 billion wholly-owned factory in China. Foreign firms normally have to partner with Chinese companies on such projects. South China Morning Post
Of course, it is a ploy! Two of the most protectionist countries, China and European Union representing those countries under the Union have practically, barred US products thru tariffs the European Union call value added taxes and China imposing massive tariffs on the few US products that enter China. Nothing burger here! Now, here is something to watch out for! Watch when the fair trade deals get signed with the US and by which countries! Those countries will benefit the most by taking market share from China and the European Union! As an American consumer, any imports I buy, I would prioritize buying from countries where the US has fair trade deals in place! I imagine most Americans will as well! Most products now can be sourced from multiple countries so, it is not like China or the European Union would have a monopoly? Smaller countries like Vietnam, Thailand, Malaysia, Singapore, Philippines and Latin American countries, like Ecuador, Panama, Argentina, etc. stand to be the big winners here! Now, their exports will go up while, Chinese and European Union products languish and demand drops!
Perhaps Merkel can get the Chinese to pick up the tab for Germany's share of NATO defense as well. Our "allies" openly conspiring with adversaries against us. Someone remind me again why NATO is so crucial to us.