As of 1/2019, I predict the trade
war would be ended in April or before. Trump-made problem would be fixed and
Trump would declare victory. Trump cares about his election in less than 2 years
and Xi’s 10-year term has plenty of years left. A full-fledged trade war could
not be good for both countries and the rest of the global economies.
I expect the forced transfer of
technologies will be eliminated. It is an unfair bait for gaining the Chinese
market. We have to blame the U.S. CEOs signing these agreements for their bonus
consideration. So far, both sides have lost a combined total of 6 billion. Many
long-term harms have been done to the U.S. Here is a summary of the actions and
counter-actions from China.
|
U.S.
|
China
|
Tariff
|
Will not gain a lot of jobs as
other countries and robots would fill the gap.
|
Will pass tariffs to the
consumers.
Will have less profits.
Will lose the market to some
countries.
|
Barriers
|
Would open the market to more
US products.
|
Patriotism would discourage citizens
to buy US products.
|
Unfair rules
|
This is a bright spot for US.
|
Could have more impact 5 years
ago. China depends less on foreign
technologies than before.
|
Internal market
|
Will be reduced.
|
Will be expanded.
|
Treasury
|
Interest rate will be higher.
|
Reduce owning US Treasury.
|
Depreciation of the Yuan
|
Harmful for export goods to
China.
|
Make Chinese products more
competitive.
|
Core technologies
|
Will lose these sectors to
China eventually.
Intel, Micron… have suffered
already.
|
China will concentrate research
on CPU and memory.
China may limit rare earth
export to US.
|
US allies
|
Eventually they will be sided
with China due to economic reasons.
|
Eventually will gain more.
|
US Corporation
|
Many will suffer such as Apple.
|
Less FDI.
|
Soy
|
A direct blow.
|
Will switch to other countries
at higher prices.
Soy will be reduced in the mix
for feed.
|
Education & tourism
|
Will be decreased from China.
|
More universities and more
tourists to Europe.
|
|
|
|
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