A Trade War With China?

if I were Chinese leader, i would impose a tax exporting to US, thus reducing the the trade imbalance with US while average Americans pay more for everday life. the surplus from trading with US is useless for china now when china has 2.4 T dollars in balance, most of them invested in US bonds. with the dollar devalues at the current speed, it is very foolish for china people to pollute their river and environment to trade for toilet green papers.

I am a chinese, and I support trade war with US since we do not need those money, we have too much.

Quote from JoePaterno:

I would RELISH a trade war with China. There is no free trade currently with them. We are one of their job creation services.

This is the 2010 YTD amount of goods/services between ys. The hell with China. We buy almost 400% more than they buy from us. And a lot of the following is probably them buying agricultural or even "recycled/scrap goods."

China purchases from USA 48,551.1
USA purchases from China 193,918.2
YTD Deficits -145,367.1

http://www.census.gov/foreign-trade/balance/c5700.html#2010

New formula, China must buy an equivalent amount from the USA as we buy from them , or else they pay full tariffs on the difference.
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Quote from adadadog:

The congress men may be opportunistic but are not stupid. They are toying around with the election year gimmick sanctions against China, but will be either stopped by others or back off by themselves. They do not want to be responsible for sending U.S. economy into an abyss, even for the tantalizing price of getting elected.
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What? You don't think that if politicos had to choose between (1) condemning the US to a SHITHOLE, and (2) getting reelected... that they wouldn't choose the latter?
 
Quote from 377OHMS:

Nonsense.

If I were running things I would make sure that if you wanted a toaster-oven in the USA you had to buy it from a US manufacturer. I would limit imports from China to raw materials, almost nothing manufactured. If China developed a monopoly in any particular raw material I would create trade barriers to it and develop domestic capacity.

That would cause some immediate hardship but would strengthen the US relative to China considerably over time.

China doesn't view the world as a free market in which to conduct free trade, it see the world as something to exploit towards some kind of hegemony. Its time to take them on.
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Yours is a recipe for disaster and is a symptomatic of the hysteria that Obama has whipped around the nation to boost his flagging polls. Don't fall for that trap man.

History bears out these theoretical observations. Thirty-five years ago it was Japan that the U.S. was lecturing to revalue its currency upwards.

At the time one dollar fetched over 300 yen. During the intervening decades the dollar has duly been made weaker to the point that now the dollar fetches less than 100 yen. That is to say, the yen has appreciated more than threefold against the dollar. And what happened to the trade deficit of the U.S. vis-a-vis Japan?

Sad to say, rather than approaching equilibrium, it has worsened tenfold!
 
Quote from businessstaxes:

you do know that trade wars often lead to military wars.

instead of a recession you get depression as net job losses in both countries plus rising inflation.

only reason Germany went to war in 1939 was the unfair treaties of 1918 and the worthless german currency in the 1930's

it built the military to create jobs.

and japan invaded manchuria for the oil since US had the oil embargo on japan.

a trade war would weaken china's economy and demand for worldwide commodities dry up and the yuan would weaken even further.

i don't know what the hell the house is thinking. the whackos think the forex market is a fix market and didn't float til 1970
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Excellent observations. Few remember that we had Japan under an embargo and cut-off from Dutch-East Indian oil (Indonesia).

China doesn't want a war with the USA in my opinion. They want propserity for their people and a fair "share" of natural resources. Its just that their culture has not fully embraced the concept of fair play. The USA has a highly developed sense of fair-play. The Chinese don't quite understand what all the fuss is about regarding their artificial currency value.
 
China controls if the dollar remains the reserve currency of the world. What would happen to the US if they refuse the dollar and only accept Euros. Take a look at the Chinese ownership of companies based in the US that sell to China. In one pocket and out of the other. If they want our technology, products etc. they simply buy our companies and transfer the knowledge and know how back to the mainland.

There was an interesting study a few years back when Motorola entered the Chinese market. They basically got raped and pillaged in a one sided transaction. Chinese laws and modes of operation are much different than ours. No anti-trust laws, price fixing is common practice.. Even their judicial system is shoot first and anyone else that questions the shooting.

We are in Afghanistan because the Chinese were awarded contracts and access to all of the untapped mineral wealth... The Saudi Arabia of Lithium.. Our companies lost the bidding war in 2007. It just so happens our military is occupying these regions and the chinese are unable to get to work.

Lets say an all out embargo of trade between the US and China were to start today. The Chinese would continue to sell the same products and volume but to Mexico and Canada who would mark-up the products and resell them to the US. Everything just costs more and our dollar loses its reserve status and value.

Take a step back and look at 5000+ years of Chinese History versus the US 225 years. We've had less than 10 generations versus at least 250. We've really only carried the torch as a world power since WW II. 60 years... 3 generations ruled by the big nuclear stick.

Our military dominance is questionable... Our technology may be superior but we are losing to amateurs throughout the middle east. The Chinese military is 3x the size of ours, they have nukes and the will and stomach to fight to the death.
 
someone please explain something to me so i can understand.

if we place tariffs on chinese goods (like the poultry tariff they just put in play at 105% - so whoever above said that won;'t happen needs to rethink a bit) and make them more expensive coming into the US, what is to stop companies from simply buying from, or setting up manufacturing in every other poor asian country out there salivating for a piece of the pie? how does this result in an increase in american jobs?
 
Quote from Tsing Tao:

someone please explain something to me so i can understand.

if we place tariffs on chinese goods (like the poultry tariff they just put in play at 105% - so whoever above said that won;'t happen needs to rethink a bit) and make them more expensive coming into the US, what is to stop companies from simply buying from, or setting up manufacturing in every other poor asian country out there salivating for a piece of the pie? how does this result in an increase in american jobs?
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It dosen't. Indonesia has 200 million people and Vietnam has a population of 90 million which is enough to soak up any demand for labour.
 
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