Ding Yifan, a policy guru at the Development Research Centre, said China could respond by selling holdings of US debt, estimated at over $1.5 trillion (£963bn). This would trigger a rise in US interest rates. His comments at a forum in Beijing follow a string of remarks by Chinese officials questioning US credit-worthiness and the reliability of the dollar. China's authorities seem split over how to respond to moves on Capitol Hill for legislation to punish Beijing for holding down the yuan. The central bank has ruled out use of its "nuclear weapon", insisting that it would not exploit its $2.45 trillion of foreign reserves for political purposes. "The US Treasury market is a very important market for China," it said. Full article-: http://www.telegraph.co.uk/finance/...-US-it-will-emerge-as-loser-in-trade-war.html
China and the US both need one another. I think both lose in a trade war. We need them to buy treasuries and they need us to buy their crappy products.
Then everyone loses confidence in US treasuries and the USA collapses. The USA phenomenon is no more.
if their products are so crappy why do u buy them. is it because america is to poor to buy quality japanese and german goods?
China and USA "fake trade friendship" remainds me of Tom and Jerry cartoons. How long will Cat and mouse friendship survive?
I think both lose in a trade war. _______________________________________________________ Wrong. Thats the "old theory" people and the administration are trying to hold on to. China has more consumers, consuming their own products as is the rest of the world. The US consumer is not buying like they use to and China understands and has adjusted. China holds massive Debt for the US....so, they rather not see us tank but moving into the Second World From First World will not hurt China's Position. So, stop thinking they "NEED US". Or we Need Each Other. That is a false. A trade war will hurt the US far more.
china Exports to U.S. Of the $287.8 billion in American imports from China in 2006, the following product categories had the highest values. Computer accessories, peripherals and parts â¦US$28.9 billion (10.1% of China to U.S. exports, up 12.4% from 2005) Miscellaneous household goods (e.g. clocks) ⦠$26.5 billion (9.2%, up 17.2%) Toys & sporting goods (e.g. bicycles) ⦠$22.2 billion (7.7%, up 10.2%) Computers ⦠$17.4 billion (6%, up 20.2%) Non-cotton household furnishings & clothing ⦠$14.6 billion (5.1%, up 11.3%) Video equipment (e.g. DVD players) ⦠$14.5 billion (5.0%, up 34.9%) Household furniture ⦠$13.2 billion (4.6%, up 14.3%) Footwear ... $10.7 billion (3.7%, up 11.1%) Cotton household furnishings & clothing ⦠$9.9 billion (3.4%, up 29.6%) Telecommunications equipment ⦠$8.3 billion (3.0%, up 23.7%) Fastest-Growing Chinese Exports to U.S. Below are American imports from China in 2006 with the highest percentage sales increases from 2005. Zinc ⦠US$8.6 million (up 616% from 2005) Nickel ⦠$25.9 million (up 273%) Lumber ⦠$74.7 million (up 213%) Specialized mining & oil processing equipment ⦠$96.6 million (up 188%) Oil field drilling equipment & platforms ⦠$1.6 billion (up 182%) China Imports from U.S. Of the $55.2 billion in American exports to China in 2006, the following product categories had the highest values. Semi-conductors ⦠US$5.9 billion (10.6% of China from U.S. imports, up 74.7% from 2005) Civilian aircraft ⦠$5.3 billion (9.6%, up 39.7%) Soybeans ⦠$2.5 billion (4.6%, up 12.5%) Plastics â¦. $2.2 billion (3.9%, up 18.8%) Raw cotton ⦠$2.1 billion (3.7%, up 47%) Industrial machines ⦠$1.97 billion (3.6%, up 29%) Copper ⦠$1.86 billion (3.4%, up 99.7%) Computer accessories ⦠$1.82 billion (3.3%, up 27.5%) Aluminum ⦠$1.7 billion (3.1%, up 90.3%) Steelmaking material ⦠$1.69 billion (3.1%, up 11.9%)