China tariffs
mark94
Arizona
Here is the real reason we are imposing tariffs.
The Made in China 2025 initiative, announced in 2015 by China’s State Council, seeks to make that country nearly self-sufficient in 10 crucial industries, including aircraft, robots, electric cars, and computer chips. Beijing has set out specific goals for market shares by industry.
The plan aims for near self-sufficiency in components by 2020 and materials five years later. Moreover, Beijing, stepping into trade-violation territory, wants Chinese industries to possess 80 percent of their home market in the listed sectors.
CM2025, as the initiative is known in China, calls for jumbo-sized, low-interest loans from state investment funds and development banks, aid for the purchase of foreign competitors, and research subsidies.
If allowed to develop these industries, using technology stolen from other countries, and subsidized by the Chinese government, China would dominate these industries and drive others out of the business, much as has happened with steel.
Imagine companies like Boeing, Lockheed Martin, and Intel facing competition that charges half its price. Additionally, once their stock prices collapsed, China would look to buy them out and use their research and technology.
This is a huge national security issue.
The Made in China 2025 initiative, announced in 2015 by China’s State Council, seeks to make that country nearly self-sufficient in 10 crucial industries, including aircraft, robots, electric cars, and computer chips. Beijing has set out specific goals for market shares by industry.
The plan aims for near self-sufficiency in components by 2020 and materials five years later. Moreover, Beijing, stepping into trade-violation territory, wants Chinese industries to possess 80 percent of their home market in the listed sectors.
CM2025, as the initiative is known in China, calls for jumbo-sized, low-interest loans from state investment funds and development banks, aid for the purchase of foreign competitors, and research subsidies.
If allowed to develop these industries, using technology stolen from other countries, and subsidized by the Chinese government, China would dominate these industries and drive others out of the business, much as has happened with steel.
Imagine companies like Boeing, Lockheed Martin, and Intel facing competition that charges half its price. Additionally, once their stock prices collapsed, China would look to buy them out and use their research and technology.
This is a huge national security issue.
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8 comments
It is also complicated by competition from a communist country. We have free markets that allow for most goods to carry market prices. A communist country won’t face that type of internal market. It can be quite dangerous as pricing and demand are influences in the wages paid to workers.
It could be very dangerous - as it’s a global economy - but there may need to be a protectionist stance adopted in certain areas.
Simple explanation: if you owe a few hundred thousand dollars and can't pay, you are in trouble, on the other hand if you owe a few hundred trillion and can't pay the debt holder is the one in trouble.