This is capitalism working properly, improving living conditions for hundreds of millions of people around the world. China used to have 97% of it’s population engaged in agriculture.
Using trade barriers in an attempt to turn back the clock to some kind of post-war golden age of US manufacturing isn’t going to work, it’s just going to make Americans poorer because the products they consume are going to get more expensive.
Might keep Tesla around for a while longer though.
The middle class is getting poorer and the factory jobs/blue collar workers have disappeared so what is the incentive to maintain the status quo for these people? The fear that they might not be able to afford the latest smartphone ? What good is that if your only viable jobs are uber or deliveroo
The aggregate benefit of hundreds of millions of Chinese becoming richer appears to be greater than the aggregate disbenefit of a few million, or even a few tens of millions of Americans becoming poorer, so in straightforward utilitarian terms, Eschatologist is correct. Still, it’s unlikely many people take much personal satisfaction from being one of the eggs cracked into making the omelette.
Are the trade deals with Canada responsible for this? Have any trade deals or tariffs been pointed out as what is causing the problem? The reaction to Trudeau saying that Canada would retaliate to US tariffs with tariffs of their own was pretty ridiculous.
It looks like the Yanks are taking the China/US trade war to the next level by arresting the CFO of Huawei in Canada and seeking her extradition to the US. This comes on the back of a couple of Telco’s backing out of using them as a vendor for their 5G kit in Britain, Australia and NZ.
This looks like the key take away, less Trade War more Cold War.
You have to go back to stories like ithe below in May of this year, to get a better view on the long game and to what is really going on. The infiltration by communist China deep into the US and US military infrastructure and personnel seems to be what is at play here, nor is it by accident.
Basically even as a consumer, you have to treat anything electronic manufactured in China especially by Chinese companies as spyware if it has a camera, mic and can connect to the net. I would include Toys in that.
There was an incident discovered earlier in the year where a lot of US Internet traffic from one of their Telco’s was being routed through China Telecom and then back. It appears they have become quite brazen of late. I’ll see if I can find the link.
I saw it noted Nokia share price has gained as an affect of the news of competitors difficulties, not sure how true that is but might be something in it with the 5G race. - marketwatch.com/investing/stock/NOK