China using Russian strategy in trade war with America

RNG

Forum Staff
Apr 2013
38,942
26,859
La La Land North
Basically, several experts think China will simply devalue their currency (even more) to minimize the effect of tariffs and just wait it out. That was Russia's strategy and it was quite successful. That is successful for a government that doesn't have to worry about getting elected so can ride out the short to medium term recession it will cause.

You can read the analysis leading to this conclusion here: https://www.axios.com/chinas-coming-russian-counter-strike-62c4ffa3-5290-46d7-844e-4ad8e88f880b.html
 
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Jun 2013
28,864
15,455
Ohio
China holds all the cards. They can also start retreating from the Treasury Bill market and send U.S. interest rates soaring.
 
Oct 2009
512
88
Cliffside Park, NJ
  1. “Import certificates” is a proposed unilateral policy to significantly reduce or entirely prevent its nation's experiencng annual trade deficits of goods while simultasinously increasing the nation's GDP and numbers of jobs more than otherwise. The policy's entire direct net costs are passed onto its nation's purchasers of imported goods. Refer to https://en.wikipedia.org/wiki/Import_certificates .


    Trade deficits indicate their nation has purchased more products than it produced and they always reduced their nation's GDP, (which also drags upon the nation's numbers of jobs).


    Excerpted from https://en.wikipedia.org/wiki/Import_certificates :


    “Trade balance’s effects upon a nation's GDP … trade surpluses are contributions and trade deficits are "drags" upon their nation's GDP.[44][45][46] … (44) Staff, Investopedia (11 May 2010). ”Expenditure Method”. Retrieved 15 March 2018; (45) Analysis, US Department of Commerce, BEA, Bureau of Economic. 'Bureau of Economic Analysis”. www.bea.gov. Retrieved 15 March 2018. (46) “gross domestic product – Define & Formula”. Retrieved 15 March 2018.