Tariffs paid by importers. Can US get alternative source of supplies? If NO, means US importers still have to buy from China for the time being. 25% import tax will be foot by the end users. May take another one or two years to phase out imports from China.
During this period, what China should do?
1. Devalue RMB to trap all US investment so not easy for them to move out capital. 2. Impose capital control, but that may be reciprocal action by US. 3. Selling US Treasury, with devaluation, can bring back more in terms of RMB. 4. To limit tourist/ students visiting/ study in US. 5. Move excess production capacity to friendly countries in SEA, Africa and South America. 6. Open up new markets in Asia, Africa and South America with discounted pricing to squeeze out US products. 7. Develop domestic demand further. 1.4 billion population can be self-sustain market for at least three quarters countries' output. 8. Restrain US companies expansion and involvement in certain sector compltely. 9. Stop all strategic war material export to US. That is to include mobile phone battery, rare earth minerals, any products highly dependent upon China manufacturers.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kingcobra
2,772 posts
Posted by kingcobra > 2019-05-10 11:23 | Report Abuse
GOOD JOB! let the tensions between US-CHINA continues........