Originally posted by SquelchbelchYou're wrong. America does not need Chinese products. China supplies nothing that we cannot supply ourselves. A small increase in prices to consumers would be a small price to pay to slow down a challenge to our dominance.
As far as I'm aware the US is in trade deficit to China by around $8 billion.
What that means put simply, is that America needs Chinese goods more than China needs US goods & services.
A lot of the imports are basic electrical & manufactured goods & clothing & textiles. They are bought & sold because they are relatively cheap.
Banning the imports ...[text shortened]... with China would crash Wall St instantly.
Please try to think before you post such nonsense.
America is far better able to handle a stop in trade with China than China is.
Losing the American market would hurt the Chinese more than losing the Chinese market would hurt America.
I'm not sure I put it any more clearly than that, if you still don't understand, that's your problem.
2 edits
It's the US that has all the trade quotas up, not the Chinese.
The American market can't get enough of the Chinese goods. They are in trade deficit to China by many $bn
What don't you understand?
http://news.bbc.co.uk/1/hi/business/4719826.stm
Edit:
Seems I was wildy out with my figures for US trade deficit to china. Apologies:
"But the US trade deficit with China jumped by 24.5% to a record $201.6bn in 2005.
Originally posted by SquelchbelchThat trade deficit is why it hurts China more than America.
It's the US that has all the trade quotas up, not the Chinese.
The American market can't get enough of the Chinese goods. They are in trade deficit to China by many $bn
What don't you understand?
http://news.bbc.co.uk/1/hi/business/4719826.stm
2 edits
Originally posted by MerkSo the US giving China $201 bn more than it receives hurts China somehow?🙄🙄🙄
That trade deficit is why it hurts China more than America.
Where exactly are these products going to come from, if the US firms that place the orders rely on their competitive pricing?
Many US importing firms would go bust, the inflation rate would increase & unemployment would rise.
Most goods that are imported from China are low tech goods, so the USA has more then enough technology to make them themselves (Most of the know-how in China has been imported from the USA or Europe). That doesn't mean that such a trade ban wouldn't have some devestating effects (on both economies).
China would lose it's most important market, losing a large part of its exports. However the USA would have some serious issues as well, you are fooling yourself if you think that it will only slightly increase inflation. See how many Chinese are working in factories exporting to the USA and see if you can find enough Americans to replace them. Besides, it would taken months, if not years to have all those new factories up and running, so in the meantime you can expect to see many products disapearing from the shelves.
Originally posted by MerkThe world economy doesn't work quite a simply as you seem to think it does.
If China loses that money, yes. That's a major ding to the Chinese economy.
You do not simply sever trade with a country who's trade you are in deficit with by over $200 bn unless you don't mind stock market meldown & economic decline.
The US economy relies on international trade. A trade war would mean that US goods wouldn't be sold in China (& possibly her allies - crucial emerging markets) as well, further damaging the US economy.
I'm not going to waste my time by giving you a basic lesson in economics - I assume if you were interested at all you would already know all this. The principles of international trade & the World Economy are the ABC's of Macroeconomics.
It's a bit like someone posting "I don't agree with the principle that 9x9 = 81".
Well...
Tough!
Originally posted by BartsGood god. Since when did china become the only place with cheap labor?
Most goods that are imported from China are low tech goods, so the USA has more then enough technology to make them themselves (Most of the know-how in China has been imported from the USA or Europe). That doesn't mean that such a trade ban wouldn't have some devestating effects (on both economies).
China would lose it's most important market, losing a lar ...[text shortened]... running, so in the meantime you can expect to see many products disapearing from the shelves.
Compared to the effect on the Chinese economy, its affect an the American economy would be small.
Originally posted by SquelchbelchDo you honestly believe that the American economy would take a bigger hit than the Chinese economy or are you just trying to argue for the sake of arguement?
The world economy doesn't work quite a simply as you seem to think it does.
You do not simply sever trade with a country who's trade you are in deficit with by over $200 bn unless you don't mind stock market meldown & economic decline.
The US economy relies on international trade. A trade war would mean that US goods wouldn't be sold in China (& po ...[text shortened]... ike someone posting "I don't agree with the principle that 9x9 = 81".
Well...
Tough!
Crap furniture and chinglesh assembly directions are something America can do without. The loss of these products will not cripple America.
Originally posted by MerkChinese stuff is cheap crap.
Do you honestly believe that the American economy would take a bigger hit than the Chinese economy or are you just trying to argue for the sake of arguement?
Crap furniture and chinglesh assembly directions are something America can do without. The loss of these products will not cripple America.
Originally posted by SquelchbelchPretty much everything you just posted is wrong. The US economy would be just fine if China sunk beneath the ocean this afternoon. We got along fine before we were trading with them, we'll get along fine if we stop.
The world economy doesn't work quite a simply as you seem to think it does.
You do not simply sever trade with a country who's trade you are in deficit with by over $200 bn unless you don't mind stock market meldown & economic decline.
The US economy relies on international trade. A trade war would mean that US goods wouldn't be sold in China (& po ...[text shortened]... ike someone posting "I don't agree with the principle that 9x9 = 81".
Well...
Tough!
Trading with China is all about cheap goods and cheap labor. All of that can be found elsewhere. Yes, it would be a setback to lose trade with China, but only temporary. Americans aren't going to suffer because we have to pay an extra buck for a plastic toy or a $5 dollar pair of sunglasses.
China isn't the only place in the world with cheap labor, but it has nearly a third of the population in low wage countries. Even if you don't think that cutting yourself of from such a large and cheap workforce won't have any impact on prices you would still be left with the transition period during wich the all those factories have to be relocated.
Originally posted by MerkI never said that at all.
Do you honestly believe that the American economy would take a bigger hit than the Chinese economy or are you just trying to argue for the sake of arguement?
Crap furniture and chinglesh assembly directions are something America can do without. The loss of these products will not cripple America.
Both would suffer - China's balance of trade would fall into deficit (it was reported as being +$23.8 bn in October 2006), whereas the effects on the US economy would be longer term, such as increased inflation & unemployment.
By the way, the overall US balance of trade was -$856.6 bn at the end of 2006 by comparison. The US economy is propped-up by imported goods & services:
http://news.bbc.co.uk/1/hi/business/6450565.stm
Originally posted by SquelchbelchWith all of the Chinese ones being replaceable relatively easily.
I never said that at all.
Both would suffer - China's balance of trade would fall into deficit (it was reported as being [b]+$23.8 bn in October 2006), whereas the effects on the US economy would be longer term, such as increased inflation & unemployment.
By the way, the overall US balance of trade was -$856.6 bn at the end of 2006 by com ...[text shortened]... my is propped-up by imported goods & services:
http://news.bbc.co.uk/1/hi/business/6450565.stm[/b]
Originally posted by MerkYou would just be replacing one country's cheap imports with another. There is an absolutely massive demand in the US for cheap imports, stemmed by strict quotas. Making this stuff domestically just would not work, because of the wage price inflation issue.
With all of the Chinese ones being replaceable relatively easily.
Importing from another country with low labour costs does not solve the balance of trade issue.
Can I ask you 2 questions & try to give me your reasoned response:
1)Why doesn't Bush just stop importing goods into the US economy if it is simple as you suggest?
2)Why does the US economy trade on the world market at all - why not simply buy & sell everything you need domestically?