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I see China moving to appease the Americans in the short term and then working to secure their economic independence in the long term. The truth is that the Chi

I see China moving to appease the Americans in the short term and then working to secure their economic independence in the long term. The truth is that the Chinese know that they have overplayed their hand here; that Trump can raise tariffs all day long and it is foolish to race to the bottom with him. By making the requisite concessions in the trade war, which, as Ben noted, has historically been tilted to their favor, they will be able to steady their economy as they continue to build up their advanced technology infrastructure.

SubiculumCode 7y ago
If the China tariffs last too long, it seems logical that supply chains will move outside of China. This might be ok for China, which is purportedly looking to pivot to a consumer based economy, but it might not be on their chosen timeline.
- hyeonwho4 7y ago
  Disposable income of the Chinese consumer is almost all locked up in housing.
  - Fjolsvith 7y ago
    Supporting: https://news.ycombinator.com/item?id=19967740 https://news.ycombinator.com/item?id=19967740
frozenport 7y ago
You are absolutly correct. China has to make de jurre concessions, that are nothing more than agreeing to unenforceable vagaries. -> Protecting IP is only as real as the enforcement action. -> Competition can be suppressed by half safety regulations or stopping the items at port. -> Non-competitive taxes can be moved from central to confusing local laws. -> Internet fragmentation can be implemented as preferential traffic. All of these are already happening. It speaks to the Chinese government's resolve inspire nationalistic sentiment that they miked this situation for political leverage.