China’s trade surplus passes a trillion dollars

…and the year isn’t over. The weak Renminbi has powered Chinese exports. Weak domestic demand as a result of the property price collapse and low interest rates have created the conditions for a very weak currency, undervalued by perhaps 30%.

Now in a perfect economic world China should be stimulating domestic demand and importing more to bring this into balance. But they aren’t doing enough. A manufacturer in Greece may be told it’s not his cost structure that’s the issue. But what is he to do, continue investing in a business with a handicap. Who knows how long it will take to get currencies realigned.

For the moment it’s great for the consumer, cheaper, well made products. And make no mistake the Chinese products are superb quality. You can buy an excellent Chinese pair of shoes on Amazon for half the price of anything made in the States. I bought a pair before going to Spain…walked hundreds of miles up and down the sunny hills of Madrid etc. They still look like new 18 months later,

Brilliant, but is it? Are we turning into the Eloi of HG Wells’ novel. A Western world that will rely on others for the essentials of life? This strikes me as a bad plan. Trump’s tariffs are one response. But a 20% tariff doesn’t offset a 30% mispriced currency.

The WTO is failing as an organisation- or has already failed.

China should not be allowed to have two currencies to make its export price low.

Also, it is ludicrous that they are still considered a developing country.

What happened to Trump's 130% tariffs?

It does seem that the Supreme Court are going to strike down Trump's tariffs very soon.

He is doing major damage to the world economy and to long-term relations with America.

The House will probably approve some tariffs- mostly against China.

Trump has a few other avenues available that work in similar ways to tariffs- but they are nowhere near as effective for him to use as a tool to exort, blackmail and coerce other nations.

It is not clear who exactly Trump's allies are, other than Russia.

It is very funny. Already stated many times, the rest of the world would fare better if it minimises its trade with the liberal countries.

China is forced to keep things going as the US and co are relentlessly to strangle China by cutting their lines of supplies. The idea that China does not make enough to spur domestic consumption is preposterous and once again shows how liberals are unable to accept the world as they have shaped it.

China can not do more to spur their domestic consumption because it would threaten too much liberal countries and their fragile ego. The world is finite, its consumption is finite and liberal countries are used to getting the lion's share of the world consumption. China can not move without liberal countries threatening to send nukes to it.

Er…no.

It is not clear who exactly Trump's allies are, other than Russia

Calling Russia an ally to the US is flattering for the US. Wrote time ago that the expectation was that Russia would concede minor political points in order to keep the ball rolling. It never happened. Even more, Russia has doubled down on the political supremacy by distributing stars to the US policy. It could not get clearer.

Er…no

When nothing is worth writing, better to write nothing.

Er no….when nothing is worth responding to there’s no point in responding.

Too many words to say a simple: there is nothing in store to be answered.

One of your best Trad….I like the economical version you are adopting on this string. Pretty soon you’ll graduate to ‘er no’.

Word-salad-Trad, with a pinch of horse manure appetizing AF.

Very funny. Liberals do as they are. Potentially, it seems they find solace in thinking they control outcomes by keeping scores.

Liberals are empty shells and have a fragile ego. Very fragile.