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One problem with this line of reasoning is that an embargo will cause a trade war, which will reduce demand for Chinese manufactured goods. The end result woul
by bd_at_rivenhill 16y ago
One problem with this line of reasoning is that an embargo will cause a trade war, which will reduce demand for Chinese manufactured goods. The end result would be unemployment and social instability, which is the most important thing to be avoided as far as the Party is concerned.
- gamble 16y agoMaybe. So far, China has been able to get away with some stunningly protectionist policies. Keep in mind that there is a significant mercantilist/nationalist faction in the Chinese government that sees the US as a declining power with little leverage over China and a history of accepting one-sided trade with Asian states. They are also playing the long game on this one. It may be enough for now simply to own the resources, and only exploit their control on specific issues like the recent spat with Japan and American pressure on their currency.
- loewenskind 16y agoChina's advantage is that they can sell incredibly cheap products in vast quantities. The west has become utterly dependent on them. What will they do if China pisses them off? They're not going to manufacture at home.