Masao Miwa, Always interested, especially Asia Answered Aug 8, 2018
First, Xi Jinping is not a Donald Trump. Xi let’s his trade experts manage the trade situation that has China’s best interest at heart. Xi will be kept informed as conditions progress. China has been meeting and coordinating trade with other Asian countries. Trump has isolated the US. To replace US imports to China, trade representatives are getting new agreements from alternate sources. China is also making changes to her agricultural lands to replace imports from the US.
China’s exports to the US represents 18% of her total world exports, so while important, survivable. It won’t go to zero, but certainly something less than 18%. Much of China’s imports from the US are agricultural products and aircraft. They are replaceable with alternate suppliers.
Part of the equation, intentional or not, the Yuan has dropped in value, so it offsets some of the tariff damage on exports. We’ll see how this plays out as the damage becomes more visible. Right now, China’s focus is on technology and domestic consumption. The trade problem appears to be only with the US. Other countries have no trade disagreements or as in the case of the EU, they are talking about trade concessions and opening the China market wider to them. The world, including China, is moving to accommodate the US trade war.
China reportedly lining up countries against US in pending trade war
https://www.barrons.com/articles...
First, Xi Jinping is not a Donald Trump. Xi let’s his trade experts manage the trade situation that has China’s best interest at heart. Xi will be kept informed as conditions progress. China has been meeting and coordinating trade with other Asian countries. Trump has isolated the US. To replace US imports to China, trade representatives are getting new agreements from alternate sources. China is also making changes to her agricultural lands to replace imports from the US.
China’s exports to the US represents 18% of her total world exports, so while important, survivable. It won’t go to zero, but certainly something less than 18%. Much of China’s imports from the US are agricultural products and aircraft. They are replaceable with alternate suppliers.
Part of the equation, intentional or not, the Yuan has dropped in value, so it offsets some of the tariff damage on exports. We’ll see how this plays out as the damage becomes more visible. Right now, China’s focus is on technology and domestic consumption. The trade problem appears to be only with the US. Other countries have no trade disagreements or as in the case of the EU, they are talking about trade concessions and opening the China market wider to them. The world, including China, is moving to accommodate the US trade war.
China reportedly lining up countries against US in pending trade war
https://www.barrons.com/articles...
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