Tag Archives: Sino-American trade war

As recently as 2008, China’s net trade surplus accounted for 8% of GDP; by 2018, that figure was only about 1.3%—less than either Germany or South Korea, where net trade surpluses generate between 5% and 8% of GDP. The US isn’t far behind its Eastern neighbor: In 2018, US had a trade deficit of about 3% of GDP, down from 5% in 2006.... Instead, China’s economy today is driven by domestic consumption. In 11 of the 16 quarters since 2015, consumption has contributed more than 60% of GDP...

Smoot-Hawley redux? Markets may already be discounting this.Strategic Culture FoundationPatrick Lawrence: The US-China Decoupling Patrick Lawrence

How a global economic crisis could break out if the Sino-American trade war gets out of hand.While the analysis is not in paradigm with MMT, it is the way many if not most approach the issues and this cognitive bias gives a spin to behavior based on it.Valdai AnalyticsFinance as an Operational Theater in US-China Trade War Alexander Losev

Tim Cook's worst nightmare. But not just Apple. American products used to cool. Now, the coolness factor is disappearing.China had already completed its export-dependent phase of the economic plan, and was already embarking on increasing consumption-share of GDP. This just hastens the transition as the government is forced to increase domestic demand through stimulus to maintain employment.Zero HedgeiPhones Are Now "Embarrassing" In China As Trade War DeepensTyler Durden

Huawei’s suppliers in Japan, South Korea, Taiwan (ROC), and Britain are examining if they can continue to make business with Huawei, while some have already declared a suspension in cooperation. The issue is that these non-American companies nonetheless use some American components of technology, and if they proceed they will be sanctioned by the US themselves. It is the same reason why Russia’s Sukhoi did not in the end sell its SSJ-100 airliners to Iran…. Apparently some have forgotten...

Worse than the headline. "Unequal treaties" is a hot button for all Chinese as being reminiscent of China's humiliation by Western "gunboat diplomacy." No way Xi can accede to US demands even if he wanted to without jeopardizing his position as leader. Trump was correct in claiming that China backtracked on previously negotiated points. Xi was told to forget it.Checkpoint AsiaXi Was Ready for a Deal With Trump, But the Party and the Politburo Overruled Him Katsuji Nakazawa See also...

Chinese firm is a queen on tech chessboard, but Beijing will just tell its whiz-kids to reach the next level…. Asia Times Why capturing Huawei is no victory in tech war Pepe EscobarSee alsoZero HedgeWhite House Planned To Use Huawei As Trade 'Bargaining Chip'Xi Warns 'Prepare For New Long March' As Beijing Braces For Drawn-Out Trade FightBeijing Warns Of "Unwavering Resolve" In Huawei Fight, Accuses Washington Of "Bullying & Blackmail" "We Will Beat America Out Of Its Wits": China...

My, my. turns out that Huawei was not only making its own chips in anticipation of exclusion, but also preparing its own operating system. Obviously, native developers will create their own apps hosted in a Huawei store. This market is lost to US firms (think Google and Apple).The decoupling of the US from China and end of Chimerica is leading to a new division of the global economy into blocs, on one hand, and on the other, to a push for national self-sufficiency and control the commanding...

According to [economist and director of the China Institute of Fudan University, Zhang] Weiwei, it is enough just to take a look at the volume of the Chinese economy to understand the cause of his lack of concern. It turns out that Trump is trying to impose tariffs on imports of the goods on the Asian country which is the largest manufacturer in the world. “No matter what Trump says about his victory, we know that this is nonsense,” the expert said in an interview with Russia’s Rossiya...

Zero HedgeBeijing Backs Iran, "Firmly Opposes" Unilateral US Sanctions Tyler DurdenSputnik InternationalGoogle Suspends Huawei Access to Android Updates After Trump’s Ban – ReportsReutersSchumer asks government to probe rail tech from China Sputnik InternationalChinese Users Call for Boycott of Apple Phones Due to US Trade War