Morgan Stanley say China is in a strong position, so 'trade tensions will likely stay with us'

[Andhadhun]

The world is bigger than what China can sell. There are potential markets that have yet to open up.

Besides, US is not the LARGEST customer.

Wrong on both counts.

India is replaceable, too. The question is if it came to the point of being important enough to be replaced with something else.

This is not about India, is it ?

Nobody vendor is "important". Only the customer is important.

 

[beijingwalker]

US is irreplaceable.

China is the world biggest trading nation, industrial nation, manufacturering nation the world biggest retail markett, US will soon enough find who is irreplaceable more.

 

[Andhadhun]

China is the world biggest trading nation, industrial nation, manufacturering nation the world biggest retail markett, US will soon enough find who is irreplaceable more.

I guess we will both find out soon enough.

 

[DoTell]

China is the world biggest trading nation, industrial nation, manufacturering nation the world biggest retail markett, US will soon enough find who is irreplaceable more.

You better listen to the Indians. Look at their successful country, where would we have been without the wisdom from them smart Indians?

 

[sinait]

Wrong on both counts.

This is not about India, is it ?

Nobody vendor is "important". Only the customer is important.

Why not?
We need to learn from India.
It is the ONLY COUNTRY in the world successfully making economic use of cow URINE and SHIT.
Cowka Cola and CowDung cancer cure is the economic miracle story the world should learn from India.
SUPA POWA indeed.
India also scored a world 1st on how to repair a warship in the CAPSIZED position in the dry dock.
.

 

[Brainsucker]

I am surprised China has not simply increased tarriffs on Apple products. I remember when the US tech stocks crashed when there was a rumour this could happen.

There are still many cards China can play, Trump assumed it would be over by now.

China just want to attack Trump, not America as a whole. That's why they target Trump's supporters, not the whole US business. So the message is that the trade war is China vs Trump, not China vs USA people.

 

[Han Patriot]

China is not a big enough market to consume all the goods it produce.

Chinese made goods is only going to get more expensive in the US. Its not going to disappear. Unless someone can produce it cheaper.

I don't see how US can suffer more than china. End of the day US is the customer, china is the seller.

You forgot we are also the creditor lending money to them to buy our goods, almost 2 trillion in US bonds. =)

 

[Andhadhun]

You forgot we are also the creditor lending money to them to buy our goods, almost 2 trillion in US bonds. =)

What other choice do you have ?

Buy cattle and goats for that money ?

Its the safest investment for your money and that is why you have parked it in american banks.

 

[Han Patriot]

What other choice do you have ?

Buy cattle and goats for that money ?

Its the safest investment for your money and that is why you have parked it in american banks.

How do you define safe? We buy it as leverage and keep US addicted to buying our goods and destroy their industrial base. Why do you think Trump is so worried and going crazy. China is no more just making cheap toys and gadgets, we are now making cheap toys, gadgets and some pretty high tech stuff. This threatens the US dominance.

For decades the US is afraid of fully banning from the world trade because we are holding their balls through these treasury bills aka econ wmd.

Without Chinese goods and financing this US house of cards will fall. Why do you think Trump is so desperate for a DEAL?

 

[Andhadhun]

How do you define safe? We buy it as leverage and keep US addicted to buying our goods and destroy their industrial base. Why do you think Trump is so worried and going crazy. China is no more just making cheap toys and gadgets, we are now making cheap toys, gadgets and some pretty high tech stuff. This threatens the US dominance.

For decades the US is afraid of fully banning from the world trade because we are holding their balls through these treasury bills aka econ wmd.

Without Chinese goods and financing this US house of cards will fall. Why do you think Trump is so desperate for a DEAL?

USD is the strongest currency in the world.

US is addicted to chinese goods but they have now woken up to their addiction.

What you are now seeing is their withdrawal and accompanying withdrawal symptoms.

US needs the world trade to maintain the hegemony of the USD. It has nothing to do with chinese buying treasury bills. That is just plain delusional.

World trade largely happens in the USD and the more the world trade, the stronger the USD gets. That is why US advocates a more integrated world trade.

US does not need China to "fund" this US house of cards. They can just print more USD whenever they fell like it. US is the only country in the world who can do that.

 

[Han Patriot]

USD is the strongest currency in the world.

US is addicted to chinese goods but they have now woken up to their addiction.

What you are now seeing is their withdrawal and accompanying withdrawal symptoms.

US needs the world trade to maintain the hegemony of the USD. It has nothing to do with chinese buying treasury bills. That is just plain delusional.

World trade largely happens in the USD and the more the world trade, the stronger the USD gets. That is why US advocates a more integrated world trade.

US does not need China to "fund" this US house of cards. They can just print more USD whenever they fell like it. US is the only country in the world who can do that.

Do you know what happens when 2 trillion dollars worth of bills get dumped? US depended on Saudi oil to maintain USD$ value and in return they used their military to maintain USd$ dominance. I am not saying the system will implode but the effects of that plus the second largest economy withdrawing from this US dollar based system would be dissatrous. US is worried China trading directly converting currency directly, they know once that happens, alot of country would be free. You seem to like to cheer for this colonial system. Talking like a loyal slave. Ask China why they dare to defy US, other than us nobody can compete and rival US.

 

[TaiShang]

True, but US imports from china after high tariffs is not a sustainable model.

Also US is the only economy in the world who can just print more $ if they run out of it. China cannot do that.

Its an uneven contest despite all your bravado.

For e.g. US can subsidize US goods and dump it around the world.

So far so good. US exports to China dropped four times more than China's exports to US.

Of course, eventually, all sides will get hurt -- including bystanders. The questions not absolute gains, but relative ones.

If the US can subsidize and dump their goods around the world, they should start this afternoon.

Check out US global exports (800 billion or so). It is a resource/raw material exporting country, basically.

Nobody vendor is "important". Only the customer is important.

Then continue to be a good customer.

You better listen to the Indians. Look at their successful country, where would we have been without the wisdom from them smart Indians?

Yes, look at their debt-driven growth with negative NIIP.

 

[Foggy_Bottom]

China is the world biggest trading nation, industrial nation, manufacturering nation the world biggest retail markett, US will soon enough find who is irreplaceable more.

Well, mighty one, who has still a billion plus to feed. I hope you survive too for their sake. In the interim, thanks for kowtowing to our sanctions on Iran, mighty retailer.

 

[beijingwalker]

Well, mighty one, who has still a billion plus to feed. I hope you survive too for their sake. In the interim, thanks for kowtowing to our sanctions on Iran, mighty retailer.

Too early to tell, we still buys record high Iranian oil last month, everything comes with a price, if China does top Iranian oil , it means US made a concession which China benefits more than what she may lose in Iran.

 

[Foggy_Bottom]

Too early to tell, we still buys record high Iranian oil last month, everything comes with a price, if China does top Iranian oil , it means US made a concession which China benefits more than what she may lose in Iran.

Not too early to tell, China has said it is going to adhere to our sanctions and regardless of a very absurd claim of an imaginary US concession, China will and has kowtowed to the US demands. https://oilprice.com/Energy/Crude-Oil/Chinese-Oil-Majors-Backtrack-On-Pledge-To-Buy-Iranian-Oil.html

BTW, Trump just hit China again with a ban against Huawei, a few hours ago. So much for concessions https://www.nytimes.com/2019/05/15/business/huawei-ban-trump.html