They also fully expect both the US and Chinese tariffs to increase further, meaning they will lose
in which they have been operating for decades.
“We were convinced that one of our long-term US clients, who is actually an intermediate trader for supermarket chains in the US, would order from us. But 300 container loads of goods have yet to be shipped, with a value of about US$5 million,” said a Chinese exporter of canned fruit, who wished not to be named.
“In the case of medium-and high-end furniture, even with the addition of tariffs, it is still impossible to find substitute markets for our products,” said Xie Jun, a furniture exporter in Haining, a city in Zhejiang province where hundreds of furniture factories make goods for export to the US.
“For Chinese exporters, it is useless to be afraid because there is nowhere to hide. We can only rely on the wisdom and countermeasures of the central government,” he said, adding that as long as Beijing can maintain employment levels and prevent the housing market from collapsing, “we are not afraid”.
But, they should be. If employment levels drop, and the housing market collapses, the bargain the Communists made with the people will be broken, and the Reds last scrap of legitimacy will vanish. After that, who knows.
There is a down side to the US tariffs on Chinese imports. It does nothing for our impoverished working class nor for our trade deficits. If we want to reduce both problems, then we need to adopt protectionist trade measures that force manufacturing back to the US. That will provide employment to the working class and reduce the trade deficit. It will also go far to reduce the opioid crisis, because workers will have a future.
ReplyDeleteCosts will go up for everyone, and the middle class and Ruling Class will take some economic hits, but having a working class that actually does work is a greater benefit.
protectionist trade measures that force manufacturing back to the US is called reducing regulations and TARIFFs. the laws of supply and demand will rule. Hungry people will by food if they can't grow enough. they will pay for it by manufacturing goods and playing by the rules of international commerce. Eventually, China won't get anywhere by using the Sun-Tsu rules of fairplay in commerce. I don't think the US is the only one's the Chinese are screwing in business and are looking for the chinese to get their comeuppance. except the French. they kinda enjoy that stuff...
DeleteThe hidden thing and it is mentioned occasionally by the MSM is the insistence on Intellectual Property rights in China. This is the end game, Xi and the inner sanctum know it. China under attack from multiple fronts not the least which is Mother Nature. They are going to have starving peasants in the hinter lands this winter. A worm is decimating their food crops and a swine virus is wiping out their pork population. Add in Hong Kong unrest, South China Sea adventures, supporting the Silk Road and sub-Saharan Africa, NK thinking for themselves and then the trade tariffs and Xi will not be in power(or maybe alive) in 12 months. US customers are already relocating out of China to India and Vietnam. My company is already sourcing in Turkey for commodity parts and bringing some mfg back here.
ReplyDeleteThere will be blood, just who's and how much is yet to be seen. What i do know is that the Deep State a-holes are already positioning for the upheaval. Check out how many are building bunkers in the boonies for JIC SHTF.
Spin
Spin, I believe some of the deep staters have finally figured out that someone knows who they are and when shtf, they will be high on the list someone keeps JIC SHTF.
DeleteAs for affording all the foreign adventures and long term planning the chinese have done, they are paying for it in US Dollars. Every piece of technology that comes to chinese manufacturers goes first to the PLA. If the PLA can't use it, it is released for manufacturing. The chinese are not like the russians. they don't really have to spy on tech companies. the companies hand it to them and say "please take this with our good wishes"
sam walton's heirs in benton arkansas are not seeking alternate sources of supply of the store branded goods made in china but marked "distributed by walmart of benton arkansas". whenever i find goods that do not have a origination point on the label, I usually put it back on the shelf. the rule is, if it looks like a really good deal and is priced 70% of a name brand, it is probably chineseium and probably isn't worth the price. the food processing in china is suspect. to say nothing bad has been found in chinese processed foods lately means to me that somebody hasn't looked lately. Some major food marketers have their house brands of which some are so bad that the container tastes better than the product and probably has more nutrition.
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