Trade

Trump Boasts That His Trade War Shifts Production From Asia to… Asia

JM Ashby
Written by JM Ashby

Chinese foreign ministry spokesman Lu Kang has responded to Trump's claim that business is flooding out of China by saying investors are “still bullish” on the Chinese economy.

I don't know if that's true, but Trump's boast that this trade war is prompting American importers to turn to other sources that makes no sense at all in context of his trade war.

BEIJING (Reuters) - Foreign investors remained enthusiastic about China, the foreign ministry said on Tuesday, following U.S. President Donald Trump’s claim that his tariffs are causing companies to move production away from the world’s second largest economy.

Trump said in an interview aired on Sunday that his tariffs on Chinese goods are causing companies to move manufacturing out of China to Vietnam and other Asian countries, and added that any agreement to end a trade war with China cannot be a “50-50” deal.

Our trade deficit with China is still at or near a record high level and we have no evidence as of yet that importers are turning away from China in droves, but if even if that were the case it would mean our trade deficit with Vietnam and other Asian countries would increase by a similar amount.

Shifting the flow of trade from China to other Asian countries may or may not reduce our trade deficit with China, but it would have virtually no impact on economic conditions here at home because we're still buying goods from overseas. The average American wouldn't even notice.

At the end of the day, we have to buy our goods from someone whether its China or Vietnam. Trump cannot boast that his trade war is prompting American businesses to move production back to America because that's not going to happen.

Reading between the lines, I think we can see that this trade war is more about geopolitical power, not economics, and China is likely aware of that as well because Trump keeps telegraphing it. This is a pissing match for Trump.

  • muselet

    Donald Trump simply doesn’t know how to deal with other parties of similar status. His go-to move is to bluster and bully, and now that everyone has seen that act a few times, it’s no longer effective.

    As time goes on, I expect to see fewer and fewer outcomes of negotiations that Trump can spin as wins.

    This is a pissing match for Trump.

    What isn’t?

    –alopecia

  • 1933john

    Taiwan?

  • Nefercat

    “This is a pissing match for Trump.”
    ———————
    Yes, and unfortunately for us, every other country can see what trump can’t (and hasn’t for years), which is that he’s peeing on his own shoes.

  • Nefercat

    “added that any agreement to end a trade war with China cannot be a “50-50” deal.”
    —————————
    Why the fuck not, trump, you fucking fuck? What the fuck is wrong with a win-win?

    Oh, that’s right, the only “deal” you understand is where you get to brag about getting everything you wanted and calling the other party a stupid worthless loser while stomping on their face.

    He blathers in advance about how the other country is going to have to come crawling to him, why should any country and I include Iran have to put up with his horseshit? Of course they won’t. They’ll make their deals and treaties with other countries and make the US a pariah nation.

    • gescove

      “Trump, you fucking fuck” pretty much sums up any comment I could make about the temporary occupant of the White House.