Sunday, November 17, 2019

Quora: Will China collapse if the US completely decouples all trade from them?

Paul Clifford answered.

Last I heard, the USA currently makes up less than 11% of China’s global exports. Over time, it can make that up simply by expanding its domestic economy. And there lies the problem! China has been growing its domestic economy (establishing an affluent middle class) in leaps and bounds over the last couple of decades, and it has done so by expanding its foreign markets, which provides the revenue for China’s rapid internal growth. As is to be expected when an economy approaches maturity, that growth is slowing, but economically China is growing far more rapidly than most economies (especially the USA which is contracting).

A 11% reduction in trade would slow China’s plans for redevelopment, but it won’t crash its economy.

The USA is in dire straits! As President Jimmy Carter recently articulated: Because the USA has been spending trillions of US$ pursuing the instigation of regional conflict around the world, to make the rich richer, essential trade infrastructure in the USA is falling apart, ditto the USA education system which is biased against the talented kids among the growing poor of the USA. As President Jimmy Carter declared: China has done the opposite, and that is why China is succeeding!

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