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China says it will take 'necessary' countermeasures if US raises tariffs Friday

By CNBC

China has promised to take "necessary countermeasures" against the U.S. if Washington follows through on its threat to increase tariffsRead full story

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  • Weiyee IN
    Weiyee INChief Strategy Officer

    Trade war missiles are positioned and ready for targeting. Again in this round consumer electronics are definitely going to be impacted. But more than just Wi-Fi or bluetooth enabled devices, there are actually much more complicated issues. Even if core components are not manufactured in China, so much of the periphery and the assembly are actually done in China that separating bills of materials and lineage of manufacturing are going to be complex issues for supply chain management as well as financial

    Trade war missiles are positioned and ready for targeting. Again in this round consumer electronics are definitely going to be impacted. But more than just Wi-Fi or bluetooth enabled devices, there are actually much more complicated issues. Even if core components are not manufactured in China, so much of the periphery and the assembly are actually done in China that separating bills of materials and lineage of manufacturing are going to be complex issues for supply chain management as well as financial forecasts. Investors are right to be wary.

  • One of the toughest parts of negotiating with totalitarian regimes is it’s hard for them to climb down from publicly stated positions. This is compounded by Chinese cultural expectations for saving face as well. Under the Trump administration, the US has also been handicapped by a difficulty climbing down. At least both sides are compelled to save face, if that counts for anything at the 11th hour. If both sides are inclined to strike a real bargain, it would be no surprise if they announce a negotiation

    One of the toughest parts of negotiating with totalitarian regimes is it’s hard for them to climb down from publicly stated positions. This is compounded by Chinese cultural expectations for saving face as well. Under the Trump administration, the US has also been handicapped by a difficulty climbing down. At least both sides are compelled to save face, if that counts for anything at the 11th hour. If both sides are inclined to strike a real bargain, it would be no surprise if they announce a negotiation “breakthrough” to extend the deadline a short while.

    Whatever deal is reached, the US really cannot strike any bargain that doesn’t comprehensively take on IP theft and forced technology transfer. In reality, there is only so much you can do to mitigate that in China, as Beijing will always walk the line between actively permitting it - or passively overlooking it. Though anything would be an improvement over the status quo of doing nothing at all.

  • Brian  Nisbet
    Brian Nisbet Retired Lens Grinder

    I’m not smart enough to comment on this, but man I enjoy the smart people who do on this platform, especially how many approach these topics thoughtfully and not just with political whacky attacks. ( heard an expert on Bloomberg say if Trump is only partially successful it could make a difference of a Billion dollars in one yr. against the current trade deficit ( is it true ?

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