Donald Trump hopes to use tariff negotiations with 70 U.S. trading partners to isolate the Chinese economy.
“The idea is to extract commitments from U.S. trading partners to isolate China’s economy in exchange for reductions in trade and tariff barriers imposed by the White House,” reports the Wall Street Journal.
The U.S. will get try to get commitments from our trading partners to refuse to transit any Chinese goods across their countries, prevent Chinese companies from selling their products in their territories, and refuse to buy cheap goods from China.
If successful, it would be a total, “take no prisoners” trade war, which is probably the best way to fight under these circumstances. China’s mixed economy puts the U.S. at an instant disadvantage as China can sell anything at a loss just to grab market share. The strength of the U.S. economy is that we can out-produce the Communists. Isolating China’s economy would make Chinese goods more expensive and harder to dump.
China’s economy has been teetering for several years. If the real estate bubble collapses, millions of Chinese whose wealth is tied up in housing will suffer. China has been
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