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China Would Outlast U.S. in Trade War, Billion-Dollar Fund Says
- Thread starter vanzandt
- Start date
That's totally it. When 35% tariffs come in, many S&P constituents should take a nose dive. Altho, with Trumps tax, dereg and stimulus, unsure how big the drop will be. Already got spanked hard expecting a major sell off in US-domiciled offshore producers. APPL Ford Foxconn are all holding up okay so far... appears the market is taking a wait and see approach with tariffs....
Thinking of this tariff, it's reasonable for the government do so. These outsourcing companies will gain more because of appreciating US dollars. Now with the tariff, these gains will be used for us citizens and help reduce US deficit
Us export high tech goods to China, while import walmart kind goods from China.
High tech goods are high profit margin goods and walmart kind goods are low profit margin goods.
So US stand at higher position of a food chain and benefit more from the trades.
In a trade war, US will hurt by making less in high tech goods and consuming walmart kind goods at higher price, while China will hurt by consuming less advanced high tech goods and making less in walmart kind goods.
If you compare this loss-loss situation, US will be the one that hurt more because it will lose high profit margin trade and will be forced to move itself toward lower position of the food chain, as some of its capital will move from high tech goods sector towards walmart kind goods sector.
High tech goods are high profit margin goods and walmart kind goods are low profit margin goods.
So US stand at higher position of a food chain and benefit more from the trades.
In a trade war, US will hurt by making less in high tech goods and consuming walmart kind goods at higher price, while China will hurt by consuming less advanced high tech goods and making less in walmart kind goods.
If you compare this loss-loss situation, US will be the one that hurt more because it will lose high profit margin trade and will be forced to move itself toward lower position of the food chain, as some of its capital will move from high tech goods sector towards walmart kind goods sector.
US has a ban on high-tech exports to China?
US has banned High-tech export to China for a long time.
I think whatever high tech they get from us they can get from Europe including all their commercial planes. Likewise we can get all the consumer goods from elsewhere so it is mutual assured destruction.US has banned High-tech export to China for a long time.
US has banned High-tech export to China for a long time.
What you said are sensitive goods.They are high tech, but are so high that they only account for very small part of high tech goods.
The high tech goods we said here , are like Iphone, Intel CPU,advanced plane, etc, all these goods China can not produce by itself, and has to import from US.
If they don't import iphone, Intel CPU, they may use less advanced phone and less advanced CPU made by itself. So they consume less advanced goods while US make less profit from those goods .