https://www.marketwatch.com/story/c...tions-against-huawei-2020-05-17?mod=home-page Associated Press Published: May 17, 2020 at 6:26 p.m. ET China says it will ‘take all necessary measures’ to protect its companies BEIJING — China’s commerce ministry says it will take “all necessary measures” in response to new U.S. restrictions on Chinese tech giant Huawei’s ability to use American technology, calling the measures an abuse of state power and a violation of market principles. An unidentified spokesperson quoted Sunday in a statement on the ministry’s website said the regulations also threatened the security of the “global industrial and supply chain.” “The U.S. uses state power, under the so-called excuse of national security, and abuses export control measures to continuously oppress and contain specific enterprises of other countries,” the statement said. China will “take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises,” it said. Under the new rules, foreign semiconductor makers who use American technology must obtain a U.S. license to ship Huawei-designed semiconductors to the Chinese company. Chip design and manufacturing equipment used in the world’s semiconductor plants is mostly U.S.-made, so the new rule affects foreign producers that sell to Huawei and affiliates including HiSilicon, which makes chips for supercomputers with scientific and military uses. The U.S. Commerce Department said foreign foundries would be granted a 120-day grace period for chips already in production. U.S. Commerce Secretary Wilbur Ross said Friday that Washington wants to prevent Huawei from evading sanctions imposed earlier on its use of American technology to design and produce semiconductors abroad. Huawei Technologies Ltd., China’s first global tech brand and a maker of network equipment and smartphones, is at the center of a U.S.-Chinese conflict over Beijing’s technology ambitions. American officials say Huawei is a security risk, which the company denies. It wasn’t clear what form China’s response would take, but the sides are already deep in conflict over U.S. accusations of copyright theft and unfair trading by firms in China’s heavily state-controlled economy. Canada arrested Huawei’s chief financial officer, Meng Wanzhou, the daughter of Huawei’s founder, in December 2018 in a case that sparked a diplomatic furor among the three countries and complicated high-stakes U.S.-China trade talks. China detained two Canadians in apparent retaliation for Meng’s arrest.
Lets cut to the chase. Tariff all chinese imports. Conduct a consumer boycott of chinese products. The latter is a bit fanciful but it can be done. Start with the obvious stuff that says "made in china" on it.
Americans Are Giving Made-in-China the Cold Shoulder https://www.msn.com/en-us/money/mar...g-made-in-china-the-cold-shoulder/ar-BB14cN3P It’s not quite a new Cold War yet. Just the cold shoulder. Some 40% of Americans said they won’t buy products from China, according to a survey of 1,012 adults conducted May 12-14 by Washington-based FTI Consulting, a business advisory firm. That compares with 22% who say they won’t buy from India, 17% who refuse to purchase from Mexico and 12% who boycott goods from Europe. The poll also found: 55% don’t think China can be trusted to follow through on its trade-deal commitments signed in January to buy more U.S. products 78% percent said they’d be willing to pay more for products if the company that made them moved manufacturing out of China 66% said they favor raising import restrictions over the pursuit of free-trade deals as a better way to boost the U.S. economy. For observers of trade policy, that last point is striking because a large majority in the U.S. have traditionally shunned protectionism. According to Gallup, almost four-fifths of Americans embrace international commerce as an opportunity rather that a threat, a number that’s steadily risen over the past decade. After two years of tariff wars and now the scourge of a coronavirus that originated in China, it’s hardly surprising to see some souring of U.S. public opinion about the country’s main economic rival. But the degree of the shift and the timing of it — less than six months before a presidential election — may mark a sea change in the electorate. It could embolden some of China’s harsher critics in Washington, with huge potential consequences for financial markets. “Foreigners are an all too easy political target in normal times. But once they become unpopular, politics can turn dangerous, as they turn into policy,” said Chad Bown, a trade expert at the Peterson Institute for International Economics. “As candidates compete over who can adopt a more extreme stance toward China between now and November, their post-election policies toward Beijing are increasingly being set in stone.” (More at above url)
Just putting tariffs on China imports does nothing but tax Americans. Government should wasting billions of dollars in protecting inefficient U.S. industries and use that money to incentive the moving of manufacturing back to the U.S. Trump bullshitted the electorate with this promise. But it can be done the right way and that will be more effective than tariffs we pay for. Forget U.S., move the production not only to the U.S. but to Mexico and Cuba and Dominican Republic and create better economic dependence in the region and more jobs .
I don't know about Cuba and my knowledge of the DR is limited to a few girlfriends in PR but I think Mexico has shown that it can successfully manufacture products for US and Mexican markets. I've owned a truck made in Mexico and it had no defects and I drove it for 12 years. I don't hesitate if a product is Hecho en Mexico. Better than china. The have deep security problems and corruption and some built-in inefficiency in their oil industry. Not sure if Obrador is addressing these problems but Mexico has huge potential. Much more than Canada curiously. Mexicans are not afraid of hard work. Mexicans love Mexico and if they had some job security, some physical security and some stronger property rights they would stay in Mexico. I understand about tariffs. I realize who actually pays. It has always been so. But tariffs do send a very effective nastygram to whomever is being tariffed and China is about the get the message that we are done being bloodsucked.
Dominican Republic has two large free trade zones for export and have worked quite well so would not be a problem to set up manufacturing there. I have 1-2 cleints there and coudl work very well. Cuba has a good population of educated workers that could do well in a manufactureing plant with U.S. managers and training and still be super cheap labor wise though a fortune for the workers. This is a pipe dream assuming government allows it and not just to profit themselves and keep screwing the people but that aint happening.. I would think DR would be great because less corruption and free trade zones work well there (exempt from local taxes).