Quote:
|
Originally Posted by zman
He's doing a great job handling China by imposing necessary tariffs. What most people don't know is China has a clearly defined plan to become the World's foremost economic power by 2025 -- it is called "Made in China 2025". It was unveiled in 2015 by the Chinese Prime minister and his cabinet. The plan is to increase production of Chinese goods by a whopping 70% by 2025, in a world which is already flooded by Chinese products. This includes high tech products in IT, robotics and pharmaceuticals, sectors in which the US dominates. Currently US pays 25% in tariffs to export certain products to China whereas China pays only 2.5% when they export to the US. This has been going on for a long time in the name of globalization. All Trump is doing is leveling the playing field.
|
How Badly is Trump’s Trade War Hurting China?
https://www.counterpunch.org/2018/05...hose-who-care/
For those who care about facts and number and not simply empty hot air of the Orange Monster.
The issue of trade deficit simply cannot be solved by slapping tariffs. In a neo-liberal economy, industries will move to countries where they can find the most skilled labor for the cheapest price. This is one of the reasons why China has the upper hand when it comes to manufacturing. Why do Apple produces/assembles its products in China? Ask this question first before praising how Trump's phony tariff is solving the trade deficit.
Even in terms of science and technology, China is advancing rapidly. Read this recent
article from politico - a very mainstream site.
The social progressive policies of FDR created the middle class, infrastructure, social security, medicare, and the result was advancement in science and technology. President Reagan rolled back these, and started the neo-liberal order, which made the rich richer, decimated the middle class, and made poor the poorer, and the result is decline in science and technology too.
China has now a healthy middle class - for China to remain prosperous, China should keep this middle class alive - even if that means slightly higher manufacturing cost. If China decimates its middle class to make its rich richer, it will have same end like the US.
US now knows that it cannot compete with China anymore. Its last resort is "gaye pore juddho kora". There is a reason why US foreign policy made a pivot to Pacific and have been ramping up its military presence around the waters of China.
Slapping tariffs to reduce trade deficit will only make sense only if there is world wide UNIVERSAL minimum wage. That is crux of the matter - but no one is talking about that.