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| You've stated the problem pretty well but what's the solution?
Is the answer to erect tariff barriers not just with China but every other trading partner, Canada, Mexico, Europe?
Granted,the Chinese can only buy this country if they have the money to do it, that is the foreign exchange surplus.
But there is more than one way to reduce that surplus.
One way is, to increase what we sell to them and it's clear that the Chinese consumer wants to buy American made goods because they're better quality. Or in our case, sell them something we have that they need, namely soybeans.
America, more specifically the American government needs to think exports, needs to develop and implement policies that encourage exports.
And what are the impediments to that? Other countries tariffs? Well, let's work on that. Nobody can object to that approach, can they? Well, let's work on those issues. But there are no trade negotiations going taking place at present because we're all preoccupied with a trade war. ( I might add, the Chinese offered to buy more agricultural goods, aka soybeans & beef but now that's off the table.
With a half a seconds reflection, it's clear that a tariff war doesn't do that, can't do that, won't do that.
But beyond the trade deficit, what is the other big objection? US high tech companies can't compete in China, correct? Who exactly does that benefit? How exactly does that affect the trade deficit? American companies building and selling products whole in China has no effect whatsoever on the trade deficit. Nothing goes into China and nothing leaves.
In short, you are being asked to suffer so that some big multinational companies can make billions in China.
Edited by farmer4321 7/4/2018 07:50
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Looking at the bigger picture
