The pressure has a chance of working:
Over the last few days, more American tariffs were imposed on Chinese imports, ending a truce in the trade war between the two nations. ... It was telling that the Chinese markets declined much more sharply. That was the point the Americans were making, that China was more vulnerable in this trade war.
And this is enlightening:
China has hit economic slumps since the 1990s, usually the result of economic problems in the West. But now the cause is China because of a lot of bad decisions are catching up with the Chinese leadership that made all the mistakes in the first place. Years of tolerating corruption and ignoring the growth of bad loans (that were at the basis of much corruption) mean that just borrowing more money to give the economy a boost will not work.
China may be patient, willing to wait for circumstances to change (but then you have to admit that our Cold War policy of containing the Soviet Union was a case of great patience by America), but that is not the same as having unique long-range planning abilities. Otherwise those bad decisions would not have been made, no?
I've been all over that inbred long-range thinking myth.
We might score a big win. But it is likely this is a trade war of attrition.
Let's hope this is the trade war to end all trade wars. Battling over the terms of trade tilted against America is fine. And stopping wide-ranging Chinese espionage that sees research into cancer treatments as a valuable state asset if stolen from us. But don't forget that free trade is a good thing.
And more at the first Strategypage link on concentration camps and FONOPs.
UPDATE: More. American consumers will pay more with tariffs on imports from China. But that is separate from the reality that China has the weaker hand in a trade struggle.
And I still haven't found anyone who explains why a Chinese decision not to buy American soybeans doesn't simply result in American farmers selling their soybeans to the customers who lose their sources who instead sell to China. Isn't it just a game of musical chairs by customers and producers? At least in the short run before more soybeans could be planted and harvested?
