“Bull crap! Xi got this by BLACKMAILING TRUMP by threat to do tariffs on American farm products.”
The big deals are still in the works - North Korea, Iran, the total US/Chinese trade structure. ZTE is just one chip.
The bottom line with tariffs, is that China has much more to lose. It is one of the most favorable existing fields for the USA to fight China - we have a huge advantage.
We export about $150 billion a year to them, they export about $500 billion to us. They are still a relatively small part of our economy. China runs a net trade deficit with the rest of the world combined, excluding their surplus with the USA. (dependent on energy and raw materials imports)
China threatened to respond to Trump’s first $50 billion in tariffs (already imposed), with $50 billion against the US, including lots of farm products (which was not actually imposed).
It was discussed that the USA would respond to $50 billion in tariffs from China, with $100 billion more against China. At that point, China would have to put tariffs on all remaining US products to keep up - leaving them no further bullets to fight with in a trade war. The USA could then justify retaliating with full tariffs against China - breaking them.
Point made. China has in fact reduced tariffs on American vehicles. China blinked in the tariff contest (effectively surrendering in the trade war) - we have moved on to other chips in the game. Note that ZTE was put in danger of total bankruptcy not by American tariffs, but by penalties the USA placed on ZTE for cheating on Iranian sanctions.
Trump has the tools, and holds the Trump cards. China needs to deal, if America is now willing to use the advantages that it has.
“...China has in fact reduced tariffs on American vehicles. China blinked in the tariff contest (effectively surrendering in the trade war) - we have moved on to other chips in the game. Note that ZTE was put in danger of total bankruptcy not by American tariffs, but by penalties the USA placed on ZTE for cheating on Iranian sanctions.
Trump has the tools, and holds the Trump cards. China needs to deal, if America is now willing to use the advantages that it has.”
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LOL — China has “...blinked...effectively surrendering in the trade war...”?
It does us no good to close our eyes to the truth and set up some kind of mythology about Chinese/American trade and ongoing theft of intellectual property. The fact is that the Chinese have discovered Trump’s weak spot and that is trade in American agricultural products. It’s clear to me that the Chinese now know that they merely have to make threats in those areas and America promptly is EMASCULATED in trade talks. You may not want to believe this but keep an eye on CONTINUED CHINESE MASSIVE TRADE SURPLUSES WITH THE UNITED STATES AND CONTINUED INTELLECTUAL PROPERTY THEFT & EXTORTION.