Author: tenderloin

Trump's Tariff on China   [Copy link] 中文

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Post time 2018-3-26 02:01:38 |Display all floors
This post was edited by sfphoto at 2018-3-26 02:25
Boston101 Post time: 2018-3-25 21:11
Again, no one is complaining about a company choosing to manufacture overseas. They are complainin ...
They are complaining that if they don't manufacture in China then their products are subjected to tariffs.

If what you’re saying is true, then why did US automakers outsource the manufacturing of their cars to Mexico after NAFTA phased out tariffs between the three NAFTA member-states (USA, Mexico and Canada)? Using your logic, US automakers should keep manufacturing their cars in the USA so they can ship their US-made cars to Mexico free of tariffs under NAFTA.

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Post time 2018-3-26 07:57:40 |Display all floors
sfphoto Post time: 2018-3-26 02:01
If what you’re saying is true, then why did US automakers outsource the manufacturing of their ca ...

You've really got a mental malfunction. No matter how many times I say it, you don't understand; China forces foreign companies to setup shop there in order to sell their product without China imposing a tariff. When they do their IP and know is stolen. In addition, China's hourly wage has risen such that it's now cheaper to buy products from Japan and Vietnam.

Trump has made it clear; he doesn't like NAFTA but it is still in full effect.

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Post time 2018-3-26 08:00:24 |Display all floors
robert237 Post time: 2018-3-25 23:18
Sure sure. The west decided to export their superior manufacturing capability so anyone else could ...

Keep telling yourself that. Read reply 49 above. You are such an idiot.

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Post time 2018-3-26 08:44:04 |Display all floors
This post was edited by sfphoto at 2018-3-26 18:04
Boston101 Post time: 2018-3-26 07:57
You've really got a mental malfunction. No matter how many times I say it, you don't understand; C ...

Apple exports 80% of its iPhones made in China to foreign markets including the USA. Same with HP and DELL notebook PCs. Nobody “forced” them to outsource 100% of their manufacturing to China, with or without tariffs. Nobody “forced” them to transfer their technology to their Taiwanese manufacturing partners in China.

As for Ford and GM, they outsourced the manufacturing of their cars to Mexico which are then shipped back to the USA. The only models they sell that are still made in the USA are trucks not sedans. So even if the Chinese tariffs on cars is reduced from 25% to 0%, Ford and GM would not be able to manufacture their cars in the USA for shipping to China because the labor and shipping costs are too high for mass-market cars. And that’s why those cars are manufactured in Mexico by German, Japanese, Korean and US automakers.


You’re like Trump, dumb and dumber by the day.

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Post time 2018-3-26 16:21:10 |Display all floors
So now it will be tariff reduction on US auto imports, buy more US semiconductors and further liberalization of local financial sector? The optics on these proposals are a bit blurry.

Autos - if tariffs on US autos are reduced in exchange for no tariffs on China goods, what about tariffs on European autos? By itself, tariff reduction doesn't mean the Chinese will buy more US autos whose prices will still be relatively high (compared to local makes) if fully imported because of distance and labor charges. Quality and services are selling points the US makers must ensure all the time.

Semiconductors - yes, they can be imported which will give the Japanese and South Koreans a run for their money; more competition in this area of imports will be good for China to get the best deals; just make sure US prices are not marked up or product supplied under-performs just to meet sales target for purpose of trade deficit reduction exercise. Additionally, semiconductors must include semiconductor equipment (or no deal), not just chips and panels, and have them locally test-certified to eliminate US surveillance bugs. Can the US agree to this while allowing Huawei etc to enter the US market unmolested?

Financial sector - yes, China has already said that but be careful of past blowups. Example, Barings. It destroyed a lot of investor wealth before going down itself. If one is also not mistaken, didn't China also lose more than billions on the US' Fannie Mae and Freddie Mac? Such examples only show the US wanting exclusive management of financial services using Chinese funds on China soil can open a can of worms if the US later circumvents China's investor protection regulations in the future.

Trump should be afraid of losing his head if he continues with his tariff tirades for, as already seen, a trade war with China and others will affect the US stock market on which the US retiree population has heavily invested. If they lose their 401K pension funds should the market fall further, they will have his scalp. Perhaps as toupee.

Yet out of all this, one senses the US and China can be the best of friends going forward. It will be good for the world's future. Then one can devote more time to talking about cooperative scientific and technical ventures to make the world a better place for all. And perhaps, help US farmers beat all swords to plowshares.






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Post time 2018-3-26 20:37:25 |Display all floors
sfphoto Post time: 2018-3-26 08:44
Apple exports 80% of its iPhones made in China to foreign markets including the USA. Same with HP a ...

Again, if a company wants to manufacture in China is one thing. Being forced to is another. When Apple set up manufacturing in China, they ripped off Apple’s iPad brand (one of the most highly visible cases of theft). The Chinese have a penchant for stealing patents and other highly strategic and valuable innovations under the guise of “technology transfer” in return for a deal. Once the deal is made and the IP is stolen, the Chinese drop the joint venture like lead weight.

Let’s talk about consumers. Chinese consumers are the spenders of the future, but Americans are the buyers of today. As Chinese companies try to grow, they see the US as the prime place. Unlike manufactures in China, the US doesn’t have to build dormitories, canteens, or transportation for their workers. Another thing is that the US has better air, safer food, straight forward access to funding, and a government that doesn’t intervene.

Let’s talk about cars. These are the current foreign cars produced in the US: Acura, Infiniti, Volkswagen, Subaru, Toyota, BMW, Nissan, Honda, Hyundai, Kia, Mercedes-Benz.

Also don’t forget that the RMB is not a fully convertible currency.

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Post time 2018-3-26 20:44:51 |Display all floors
offpeak3 Post time: 2018-3-26 18:29
Use your limited imaginations on your silly mistress c.zhang rather than on Trump.  Let's see how  ...

Trumps unpredictability is a good thing. Adversaries never know when they cross the red line and are afraid to do so.

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