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Reality Check: Disengaging economically from China

chuckiechan

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https://www.washingtontimes.com/news/2018/dec/3/what-the-us-china-tariff-freeze-does-and-does-not-/

The resulting dilemma leaves the United States with only one acceptable alternative: Starting to disengage economically from China as soon and as completely as possible. Existing tariffs should be expanded and raised high enough to encourage the further movement out of China of factories supplying the United States, and to discourage U.S. companies from establishing or expanding their presences in China. (Even migration to third countries would achieve the key American aim of weakening the Chinese economy, and much remaining Chinese production would find selling to the United States at the expense of domestic American firms prohibitively expensive.)

Washington should ban outright further high-tech investments in China, in order to end the Chinese military’s access to this know-how. And Chinese direct investment in the U.S. economy should be prohibited as well — both to prevent strategically important assets from being acquired, and because a larger footprint in the United States by Beijing-controlled entities can only distort and therefore undermine free market competition.

America’s decision to expand commerce with China and integrate the two economies more tightly assumed that closer ties would move China in more capitalistic, more democratic, and more peaceful directions. Decades later, the abject — and increasingly dangerous — failure of this experiment could not be more obvious. Even though successful disengagement is no likelier to be pain-free as Mr. Trump promised in connection with his current trade war, the nation’s security and prosperity demand no less, and it’s high time for this president to exercise some genuine leadership and explain to the public exactly why.

Near total disengagement from China may be the only way the USA can survive. The Chinese system is opaque. We don't know when they are subsidizing and when they aren't. Their entire economic model depends on technological theft, and transfer of IP as a condition of doing commerce in China.

It's going to be painful, and for once Americans are going to be forced to take a longer range look at the future. CEO's are so intimidated by China they won't admit their treasure chest has been pilfered. They won't fight back because as CEO's they are paid on sales, so they will do what any addict will do - they will do what it takes to survive. They will stand aside and let China rob them blind. Well folks, the "they" is you and me and the USA. We can't spend millions or billions on R&D, just to have it stolen with impunity by China and rushed to market.

Something has to give. And it's China. China's only hope is another weak president who will do what it takes to avoid the bad publicity of making China uncomfortable. But that may not happen. Even the democrats and other doves on China are coming around to Trumps point of view. The elites better start looking at their Rolexes. The time for change has come.

God only knows what America might do when the price of rubber dog **** goes up at Walmart!
 

Amelia

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Well, gee, let's just nuke America. It will be painful. But in the long run that may be the only way to survive.
 

OrphanSlug

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The writer of that article has no idea how complicated it will be to undo all this. Might take longer to undo than it did to get us to where we are today. So much to consider, including debt holding and currency manipulation.

It’s bigger than an opinion piece.
 

Hawkeye10

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The writer of that article has no idea how complicated it will be to undo all this. Might take longer to undo than it did to get us to where we are today. So much to consider, including debt holding and currency manipulation.

It’s bigger than an opinion piece.

But you can do things like make sure that we can make enough steel that we have less exposure to Chinese blackmail, and we should, because we know that China would blackmail us in a heartbeat if they though their was profit for China and its friends in the move.

The "Everybody is nice" fantasy of the globalists died a hard death awhile ago.
 

rickc

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i always thought it was crazy. All those american manufacturers moving to China, training their workforce and giving them all the secrets of their manufacturing process. All for short term corporate profits. worst is our government encouraged it.

now this is communist Red China. an enemy of America my entire life. We built them into an economic superpower. now they are using that economy to build up a military to challenge our place.as the world's military superpower.

The cost of greed!
 

chuckiechan

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The writer of that article has no idea how complicated it will be to undo all this. Might take longer to undo than it did to get us to where we are today. So much to consider, including debt holding and currency manipulation.

It’s bigger than an opinion piece.

It took us nearly 40 years until we cant ignore it any longer. As the article stated, we expected China to chage and be an honest merchant. I remenber the “If ever Chinese person are one hot dog per day, we wouldnt have a enough cattle!”

I’d start paying attention to Chinas involvement in Pamama.
 
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