US Lacks Weapon, Ammunition in Trade War with China


Reuters’ report “Trump names China critic Lighthizer as U.S. trade representative” gives the impression that with Lighthizer’s track records in stemming the tide of imports from Japan in the 1980s with threats of quotas and punitive tariffs, Trump will win his trade war with China by employing him.

The China now is quite different from the Japan in the 1980s when Japan’s market was much smaller than the US and depended on export to the US for Japan’s economic prosperity.

Chinese market is now much bigger than the US and is expanding fast. China is now switching to relying its own market from its dependence on export.

Reuter says in another report titled “GM’s China vehicle sales rise 7.1 percent year-on-year in 2016” that China has been GM’s top market for five consecutive years. In last December alone, GM sold 434,799 vehicles in China.

Will Trump fight a trade war to cause US companies to lose their major market?

The US is a big market for Chinese goods, but most of Chinese exports are products of low technology that China can easily transfer the production to other Asian countries where labor and land resources are much cheaper.

Does Trump want China to drive away from China popular American soft drinks, fast food, cars, airliners, medicines, mobile phones, etc.? Does he believe that China is unable to produce similar products to fill its domestic market?

Trade war will certainly hurt China but China will enjoy long-term benefit from taking back the parts of its domestic market monopolized by the US.

Without strong weapons and ammunitions, Trump will lose his trade war with China sadly.

I do not think Trump is so stupid as to launch a trade war with China to hurt the US. I believe that Trump will gain from win-win cooperation with China as it is unthinkable that a great nation may have three stupid presidents in a row.

Comment by Chan Kai Yee on Reuters’ report, full text of which can respectively be found at http://www.reuters.com/article/us-usa-trump-trade-idUSKBN14N0YA and http://www.reuters.com/article/us-gm-china-sales-idUSKBN14P145.

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6 Comments on “US Lacks Weapon, Ammunition in Trade War with China”

  1. Steve says:

    AND, According to Wall Street Journal, Trump and his companies owe more than 1.4 billion dollars. This is getting interesting because some of these debts are guaranteed by him, but will a conflict of interest arise due to greed and uncertainty.? Trump may end up with an economic personal trade war in bad debts whilst Trumpeting his presidency. Wait and See.

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    • Steve says:

      This is America you are speaking about…remember? America has sent men to the moon. Remember? This is the same America that rescued China from being over run by Japan. Seems that China has forgotten her manners and is getting too big for their pants.

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      • chankaiyee2 says:

        America has not saved China.

        Before Japan surrendered, Chinese communists have recovered most part of China previously taken by Japan leaving only the urban areas to Japanese occupation. Soviet annihilation of Japan’s best army in Northeast China will enable the communists to drive away Japan.

        Japan’s surrender caused by US atomic bombs only helped the KMT to take the areas occupied by Japan and the weapons of Japanese troops. That made KMT stronger and more difficult to defeat in its civil war with the communists.

        The US gave communist China no help at all. Instead, it provided funds and weapons to KMT in the civil war.

        Why shall communist China be grateful to the US?

        Remember, communist China defeated the US in Korean War when it was very poor and backward.

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  2. Steve says:

    Critic Lighthizer may soon become Darkizer. Upon decades ago, US manufacturing companies has already moved from America’s shores to Sth Korea and Japan as their preferred destination due to cheaper labour, cost of production and trustworthy military allies. However, in the last three decades, these companies has closed shop and moved to China, mainly due to changes in technology and economic benefits. I have to say that practically none of these successful foreign firms intent on moving back to US shores. It’s like moving back to a ‘prehistoric’ era minus the dinosaurs, but with poor infrastructures, transportation, high crime rate, wages, high cost of insurances, a declining economy and a disgraceful hegemonic scoundrel nation with 20 billion dollars in debt. Notwithstanding the above, the US will soon have tweeter loudmouth President Trumpet.

    China’s market economy benefits domestic and foreign firms due to market reform which attributed to their rapid growth…According to the Demand Institute, an economic think tank run by Conference board and Nielsen said that China’s Consumer base has the potential to hit $67 trillion over the next decade…. Goodbye America, no more bargain chips. Trump’s appointed new board of Alibaba scoundrels are Three decades too late. Their job is to antagonise nations into an economic trade war especially with China, but will be ineffective, instead it will boomerang back into their faces. It’s too little too late, Goodbye, but please buy made in China.

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  3. johnleecan says:

    Definitely, it will be hard for white supremacist Trump(The Apprentice President) to go back on his words on his trade war with China and naming China a currency manipulator, which he said is the first thing he will do to China when he assumes the presidency.

    The reality star will surely be sticking to his script and will realize in the end that he’s not in a TV show anymore and that the world is not his production company that he can control.

    Xi: “Cut! ”
    Trump: “What’s the matter with you. We’re still filming.”
    Xi: “You’re in a lot of debt and the world’s toilet paper is now in over supply.”
    Trump: “But I have still have millions of US dollars.”
    Xi: “Well, that’s the toilet paper I’m referring to. And since you like Putin so much, you can Putin his a$$.”

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