Sunday, September 15, 2019

Trump has badly misread China’s hand

This guy gets it wrong about printing money and the national debt (another video), but this is very interesting: US companies do very well in China selling a lot of services, which almost counters the trade imbalance.

Donald Trump has been dialing up the tariffs and the rhetoric around the ongoing trade spat with China. Yet Xi Jingping has held a firm line and has been unwilling to fold to increasing pressure from the US. Donald Amstad from Aberdeen Standard Investments believes that Trump may have misread how strong China's hand is by overlooking some key inputs to the trade relationship between the two countries. While most of the focus has been on traded goods Amstad says to get the full picture you also need to take into consideration the value of services and the profits earned by US companies operating in China. As he outlines in this short video Trump may have badly misread China’s hand. “In China there is no political cycle. President Trump has got 15 months to sort this out before he faces re-election. So, time is very much on China’s side.”


Unknown said...

That sounds a very Neoliberal line to take "US companies are doing very well in China. Do you have a more balanced argument to add to that?

Kaivey said...

I'm only stating what maybe be a fact. I gave no opinion on it. Everyone knows here I'm very anti neoliberal.