There is no such thing as free trade between a capitalist state and a totalitarian state.
There is only ‘managed trade’ as totalitarian state’s measure all economic deals through the prism of power politics.
From 1989 through 2016 Chinese Communists managed US-China trade.
Since Jan. 2017 Pres. Trump has.
This is why we have the best U.S. Economy in 50 years.
Previous presidents did a terrible job of just “managing” trade with China. PDT came in with the new idea of not wanting to merely manage trade with China, but to change the dynamics from mere managing to controlling the whole theater of trade.
He fired the old cast of this stage and drama and went with a whole new cast and play. This is going to be some enjoyable high-drama staging.
There can be no honest and fair free trade with a totalitarian state because there is no such thing as free anything in such a state.
Some systems are so diametrically opposed to each other that the only solution for an agreement between the two is the collapse of one of the systems.
China will not concede any ground that breaks away from or shames the communist doctrine and geo-political position. So they may very well self-destruct, at least to some point. I don’t believe time is on their side.
There can be no ‘deal’; China can NOT compete, they must cheat.
Their system is inherently corrupt, they will always adulterate raw materials, because its a STATE RUN operation, not a business.
And they can NOT innovate. The same mind that would create a new widget, or more streamlined manufacturing process, would question their system, and end up as an organ donor, or at least in a re-education camp.
They are in a cage of their own making, and they didn’t design it with an escape hatch. They screwed themselves, and they have no one to blame but themselves.
I feel sorry for the people of China, but its up to them to give CCP the boot, just as with Iran. Freedom isn’t free, nor is liberty.
China basically has to agree to chop one of its feet or hands off to even begin to fully cooperate with us and sign a real, verifiable trade agreement. I don’t see that happening. Never did. Seems PDT and team didn’t either. That should have surprised no knowledgeable PDT supporter. But our side had to skillful posture somewhat to drive China into a no-win position, and skillfully posture they have! Better than anybody in our federal government that I can recall in my lifetime and further back than that.
Can be no doubt that Xi and his team were not expecting PDT and our team to have planned things that way. They probably thought our team was going to be a wuss. Turned out that instead of a teddy bear, our team flew into these negotiations like roaring eagle with talons fully stretched out to take the prey! God in Heaven….I love eagles!!!
I think the Chinese, as human beings with brains, have the capability to innovate, but they have been stealing our stuff for so long, going the cheating and lazy route, they are now acclimated to that and aren’t mentally structured to innovate themselves. What a shame. But it is what it is. The Chinese people are going to have to step up and rebel just like the East Germans, Russians and others did leading up to 1989.
Totalitarian systems are doomed to fail. Some last longer than others. But they all fall and degrade somewhere down the paths of their history.
Following the money, big corporations moved and built factories to take advantage of the low labor rates. Now that China has raised rates and stolen the IP, same movement of capital and factories is shifting to SE Asia and Eastern Europe. China has badly judged the leverage and balance of power during the trade negotiations.
This will not end well for their stock market or currency in the coming months as new tariffs go into effect. AAPL has already stated they have adequate capacity to build all products outside of China. Other SP500 companies can also redistribute production quickly and the engine of foreign investment in China will sputter to a halt.
State run economies are not able to make the millions of optimized decisions at the low and mid-level which are the key to success in the US and other free, capitalist economies.
Why Mexico is the new China
"China's threatened to restrict the flow of refined rare earths metals and there's loads of rare earths all over the world but they're useless unless they're refined and we moved all the refining to China because it was so environmentally toxic we didn't want it in the west," she said.
https://www.afr.com/news/economy/why-mexico-is-the-new-china-20190605-p51us3
POTUS is fighting for everyone in the US, and Worldwide.
Those are real BOOMS.
He is releasing hostages.
Mexico is HOSTAGE to CHINA, CARTELS.
You can not stop the flow of migrants only with a wall, you have to destroy whole system.
Slowly, he is pushing back China.
That is the main point.
More:
China and Canada fall away as Mexico becomes the US’ biggest trading partner
https://www.scmp.com/economy/global-economy/article/3007832/china-and-canada-fall-away-mexico-becomes-us-biggest-trading
Make Mexico Great Again
Because only then can we battle the flow of economic migration. Some in Canada and Mexico may still argue for a North American Union but honest thinking people know that can never happen until we can raise the standard of living in all of North America and stamp out mass corruption.
The Swamp needs drained, big time. And it's happening, some just don't see it, yet :)
