the effect depends where china's punches land. e.g. american farmers who have a large Washington lobby will have a large voice. e,g,if the Chinese impose restrictions on their students attending American universities there will be an outcry, they pay full tuition,
After China responded in kind to the initial $50 billion in tariffs, Trump added another $100 billion. China didn't respond with a new in kind tariff because they don't buy enough. They import less than $150 billion from the US. After gloating yesterday through their press that they had defeated Trump, claiming that he wouldn't risk the stock market to reduce Chinese import barriers, they are now shown to be unable to match Trump's tariff increases exactly. He also said there will be short term pain in the market. This is rapidly escalating, and if China doesn't relent, it could finally push over their economy. All the outs for China currently floating around are actually their vulnerabilities. China being cut off from USD inflows is cutting off their life line.
It is a holiday weekend in China, started yesterday. People will be all about, I would give them a couple of days. The US is 4.4 pct of the world population. Heavy consumer however much of what China sells can be bought by everyone else. I try to avoid Chinese stuff, favouring anyone else but in Colombia and all other countries it is everywhere. Plenty of untapped capacity in developing markets on the earth.
That would make the difference but they may not be in a forgiving mood. Being just a bunch of sad loses and all who don't even know about their no-go areas A part of me sees China as something that needs to be countered. Another part says let's just get off the planet, find a bigger dream to follow before the exponential function finishes it for us like bacteria out of agar in a lab dish. Bit of both I guess. We, everyone but China have way way too much of their stuff in our economies. There are rapidly capturing the high end market also. Looking at the Huawei P20 today and yep, Apple and Samsung are in trouble maybe.
Thanks ECS, I think in summary what you are saying is that if China raises tariffs on all U.S. goods to infinity, such that U.S. goods sold to China drops to zero, the U.S. is down $150 billion max, but if the U.S. did the same thing v. China, China would lose far, far more exports. That makes sense. What do you think about the whole "they might stop buying our treasuries, thereby making U.S. borrowing rates go through the roof"? Thanks.
The AI camera is gorgeous hehe. I think the Chinese want to live, they have a long history of being controlled and long term thinkers. I worked in Africa for years. They basically own Africa now and though it looks artificially small on maps, that is a lot of the Earth they have grabbed. So they can stand any siege... Xi is good for 30 years, AI will change so much though, it is hard to see. I would just push them back for now, I would like to see Colombian firms start to make better stuff for the domestic market etc. That was always my idea for African nations. Become self sufficient in the essentials including cars and kitchen sinks. I agree with protectionism, it makes sense but I probably need an economist to slap me over the back of the head. It seems to me that China has a bigger banker pool than the US. And they have Xi. The EU could swing it, it would take both EU and US.