China has a plan it does not really need Americans as much as America thinks sanctions won't work and tariffs will make it more expensive for the American middle class who we know many are broke as it is with hyperinflated prices less availability of products less Choice well things are only going to get worse in the year 2000 24 years ago China accounted for around 6% of global manufacturing not really all that much 6% by 2030 they're on track to account for over 50% of global manufacturing everything that's made more than 50% of it will be made in China as a result America is on track for its lowest number in decades most western economists are in complete denial about what is happening right now China is decoupling itself from the us it has no choice what's happening is actually called the delete America initiative and it's Gathering momentum right now whilst this will hurt both America and China tariffs on both sides are going to cause huge economic pain China has been preparing itself for what is happening but I don't believe the United States has been doing the same thing America's fight against China is one it is destined to lose the US is putting tariffs on Chinese electric cars Chinese Goods pretty much anything Chinese if it's a solar panel same deal applies cfr. org said this and it's a sentiment that is shared by many Americans but is this actually true us trade with China has grown enormously in recent decades and is crucial for both countries today China is one of the largest export markets for us goods and services and the United States is the top export market for China this trade has brought lower prices to us consumers and higher profits for American corporations but it has come with costs the optimism that accompanied China's entry into the World Trade Organization 20 years ago has vanished as Beijing continues to embrace State Le development pouring subsidies into targeted Industries to the detriment of the US and its foreign companies now though us consumers have benefited from the flood of Cheaper goods from China millions of Americans have lost their jobs due to import competition this sentiment you have to admit is widely shared by most Americans by most American news outlets by both Republicans and Democrats I think it's fair to say however is it backed by reality if the the US actually puts sanctions on chinae Goods can China fight back and hurt the us more than what the US can hurt China well actually it can in fact America should be very very worried here's why there is one big thing happening right now and in the US you guys are kind of pretending like it's not happening China's exports to the US were 8% of GDP in 2007 that's massive 8% of all China's GDP gross domestic product in 2007 was a was sending stuff to Americans getting Americans to buy their stuff but now it's only 2% 8% down to 2% hello my friends welcome to the channel I'm Sam Evans you're watching the electric Viking great to have you with us thanks for tuning in and thank you for becoming a member on the channel we've got it new members recently if you want to become a member on the channel I'll put a link in the description below it helps support the channel China could strike back at Trump's tariffs and don't get me wrong these are not just Trump's tariffs by calling them Trump's tariffs it's uh that's really dishonest in the extreme these tariffs have come not just from uh one side of politics in America they come from both sides Joe Biden has been the most vocal critic before he was a president of America of byd in fact he slammed byd and more than any other American politician in the history of America both sides of politics are in full support of tariffs on Chinese made products now the percentages differ but you get my point America's industries including defense outsourced tens of thousands of Key Parts to China during the past 20 years us manufacturers don't produce capacitors accumulators pumps compressors switching equipment and other essential equipment for us electrical utilities do they know how to does America know how to produce those things maybe but it doesn't make them none of these are hard to manufacture or expensive when manufactured in large volumes but rebuilding industrial capacity for a wide range of critical inputs would be extremely expensive key dependencies on China's Imports make America very vulnerable to Chinese retaliation in the event of a trade War so does the fact that China is not really all that dependent on America anymore right if all of a sudden the United States banned everything made in China that wouldn't really be all that influential on China to be honest yes it would be a hit on their GDP but considering only 2. 3% of their GDP Now versus 8% in 2007 is actually stuff going to America China could wear this hit would it be good for them no but it wouldn't matter anywhere near as much as what it used to Howard lutnick the billionaire nominee to lead America's Commerce department is not well known in China but he may end up shaping American Trade policy says The Economist since Donald Trump announced his pick China's investors have scrambled for information more than anything they want to know if Mrlenik will slap MrTrump's opposed 60% tariffs on all Chinese Imports such efforts have only gained urgency over the past two weeks the president-elect has threatened an additional tariff on China's Goods on his first day in office while the sitting president has ratcheted up export controls it's coming from both sides of politics in America other nominees are better understood Marco Rubio presumptive sec secretary of state has tried to force China's firms to delist from American stock exchanges and and was hit by sanctions in response to ones he helped put on Chinese officials as a Senator Mike Waltz MrTrump's choice for National Security advisor boycotted the Beijing Winter Olympics Jamerson GRE the new trade representative was an architect of MrTrump's First Trade war with China in the face of this kind of hawkishness China's officials have kept very quiet but their formula for trade talks is starting to emerge Y in ping China's leader laid down red lines in a recent meeting with President Joe Biden the gist was that Communist Party Rule and China's claim on Taiwan should not become bargaining chips then on December the 1st China's tax rebates on aluminium and copper came to an end ones for batteries and photovoltaic Solar Products fell from 13% to 9% this is a big change over the past year China has rejected claims it is exporting batteries and Solar Products at artificially low prices as Martin Lynch rasmason of exan data a research firm says cuts to rebates are the first time officials seem to have sought to lessen the force of such accusations at the same time China's officials want to increase trade with the rest of the world the ministry of Commerce has said it will boost export credit and insurance and support Logistics Services the ministry wants to expand the number of countries that can get short-term business vises and it has promised to help companies respond to unreasonable foreign trade restrictions as they rise the B Administration recently announced tariffs on solar panels from several Southeast Asian countries with the a of stopping Chinese firms from rerouting exports through third countries Trump May expand these as firms look for loopholes many have for example set up factories in Indonesia and LA or Laos two countries that are not covered by America's latest policies to help small businesses sell Goods overseas via e-commerce platforms Chinese local governments have established service centers Shanghai is setting up a Silk Road eCommerce pilot Zone to boost trade with Central Asia such tariffs workarounds mean that America's existing measures have not stopped China from increasing exports since the start of MrTrump's trade war in 2018 China's Trade Surplus has more than doubled to 820 billion or 6% of GDP its Surplus with America remains at 340 billion about the same as in 2018 if Trump is willing to strike a deal involving limited increases in tariffs his measures might reduce annual Chinese GDP growth by around 0.
4 percentage points between 2027 and 2029 according to Oxford economics research firm now C40 research a think tank in Beijing estimates that moderate tariffs of 10 to 20% would slow China's year-on-year export growth to 1. 5% next year down from 2. 2% if no tariffs were imposed Trump's promised 60% tariff rise could shrink exports by 6.
