It was sort of inevitable actually. When Donald Trump made some pretty strong statements about China and their exploitative exportation habits that he would see curbed with a hefty tariff, there was a pall in the pollution coming from Beijing and Shanghai. The Chinese were not amused. Now that Mr. Trump is president elect despite the best efforts to derail the movement he put a face on, the Chinese made the opening salvo in the potential trade war.
An opinion piece was published on Monday in the Global Times, a communist party mouthpiece, decrying the rhetoric and threatening American business interests in the country.
“A batch of Boeing orders will be replaced by Airbus. U.S. auto and iPhone sales in China will suffer a setback, and U.S. soybean and maize imports will be halted. China can also limit the number of Chinese students studying in the U.S.,” the Global Times article read.
Maize? Who calls it maize anymore? And, please, fewer Chinese exchange students means more spots in the tech fields for Americans…if they can get in.
But wait. The Global Times wasn’t done.
“If Trump imposes a 45 percent tariff on Chinese imports, China-U.S. trade will be paralyzed,” the Global Times said.
The opinion piece said Trump was a “shrewd businessman” and would not be naive, but, if he was serious with the policy, it would affect a number of U.S. industries.
“The new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences. We are very suspicious the trade war scenario is a trap set up by some American media to trip up the new president,” the Global Times wrote.
It has been noted that 45% was either a number Trump just tossed out, or it was a starting place for negotiation. The reality is that without the United States, China would have a much harder time selling its goods, even if they do make things quick, dirty and cheap. Some examples:
Oh, that’s right. The Chinese don’t have copyright infringement – or stealing trade secrets – in their culture. At least not coming from the government.
The specific threats to Apple and Boeing are fairly ripe targets given the iconic nature of the companies involved. Boeing is operating in China sort of by invitation (more like a threat) since the Chinese insist that the products sold in their country be made there (basically so they can steal the technology), and Apple is making the iPhone there simply because there is no tariff and if they made their products in the U.S. at this point the phones would be twice as expensive, and far more of a status symbol than they already are.
And in the cheap crap mode of Chinese goods, this writer had one that would just quit working whenever it felt like it, hence a switch to Android. Am saving up for an iBook, though.
More at Extreme Tech.