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This post was edited by abramicus at 2016-3-4 13:12|
Not good news for China. Trump continues steamrolling every rival as the Republican primary reaches its finale. But, at least, Trump is understandable. He wants trade to be balanced, and at the rate China is giving away the equivalent of Trump's entire net worth every week, buying its own shares (Yuans) with its export-earned dollars, of $10 billion dollars, at exuberant exchange rates that the global market would not offer and could not afford, wiping out all of China's 38 years of trade surpluses by China's "Economic Team" would have been accomplished before Trump ever takes office, if elected.
So, no conflict. Books should be already balanced. But China remains nervous that Trump might slap a 45% tariff on all Chinese imports even after that.
Actually, it might be the best stimulus for China to then consume more of what it produces, achieving growth by increasing consumption, instead of relying on exports. Making virtue out of necessity may find China and Trump agreeing wholeheartedly to raise the tariffs on each other. In fact, it is puzzling why some of those who champion China undertaing "structural reforms" designed to wipe out China's manufacturing sector by means of Yuan overvaluation, would not prefer that the same manufacturing sector remain solvent and sound by simply producing for the domestic market, as a Trump victory would necessitate.