Friends, it's "game on" with China, as President Trump has decided to pull the trigger on billions of dollars in tariffs. Make no mistake: the goal here is not to isolate us economically. It is instead to get the Chinese to wise up and start treating us fairly. Give and take -- that's what a healthy trading relationship should look like. Here's hoping these tariffs will achieve the desired result, and quickly too.
Read all about it in my latest article:
https://townhall.com/columnists/nicholaswaddy/2018/06/15/trump-is-right-to-slap-tariffs-on-china-n2491112
Dr. Waddy: Yes , I certainly would be willing to pay more for any Chinese product in order to help U.S. workers. After all, protecting whatever aspect of their economy they think to be most important is of course a Chinese priority. Our President sees our workforce as a priority. If the Chinese haven't figured that out by now, they will soon! They are the most canny entrepreneurs in the world. Our canny businessman President is a match for them and their interplay is a benefit for both nations and the world. Politicians - be schooled!
ReplyDeleteI suspect you're right that negotiating prowess will extract us from this "trade war" in the end, Jack, but it will be fascinating to see how things play out. If the tariffs are expanded, and it they stick around for a while, there could be a permanent shift towards importing goods from China's competitors... Perhaps that would be healthy too.
ReplyDeleteDr. Waddy: I wonder if one of those competitors could eventually be a united Korea. If Kim is sincere and if he can survive the undoubtedly intense and perhaps murderous wrath of those who are fully invested in the insanely Marxist and totalitarian North Korea, we may see swift movement toward that end. How wonderful it would be to see the North Korean people benefit from the East Asian economic miracle! Nonetheless, China's economy is already so extensive and its potential so promising, that I cannot imagine our not being closely tied to them for the foreseeable future.
ReplyDeleteI concur, Jack. The US-China relationship will stay close and economically crucial, but at the same time I would argue we've become overly dependent on China to produce many vital products. Spreading the wealth around somewhat would be healthy for everyone, I think. It would lower the political temperature on trade issues, for instance.
ReplyDeleteDr. Waddy: I read a short book, the title of which I cannot recall, years ago on what the French author maintained was the "Chinese conception of time and history".He said they have a view, which must be appreciated, that time moves at a slower pace than the West may perceive and that history is cyclical. Chinese history lends much credibility to this view and though the concept of "changeless China" is false, according to experts I've known, they may well be able to abide a much different pace than we embrace. What this suggests, I think, is an over three thousand year old civilization in which subtleties of expression and execution may be more refined than what we are used to. They are in it for the long run and have been since the time of Ramses II. They'll do what they have to do; they know they are back. They will deal with a complication of their trade relationship with us in a manner they see as advantageous to them and it might not necessarily be disadvantageous to us.
ReplyDeleteYou may well be right, Jack. The Chinese have been playing the "long game" very successfully over the last 30 years. President Trump has been frank about expressing his admiration for their smart tactics and negotiating skill. If they truly are smart, then I think they'll give way and make a friend of Trump. It wouldn't require them to do more than what they've known for a long time they need to do anyway: boost domestic consumption, balance their economy, and stop relying on mass exports to the USA.
ReplyDelete