WHEN two economic giants – the US and China – clash over tariff restricted trade the ripple effect of economic slowdown (recession) will be felt by almost every country around the globe with wide spread inflation and rising unemployment levels.
The white paper outlining the Chinese position against US as published in your paper equally provides their defensive and offensive positions against what the US government attempts to correct and safeguard its perceived interest against China over unfair trade and technology/job transfer.
It would be good if the US side could also clarify its position to justify its intervention to use tariff measures to reverse the manufacturing value chain taking place onshore to safeguard technology, retain jobs and circulate dollars internally rather than losing those jobs and dollars to China.
US is a developed first world nation while China considers itself as a developing country which is the first grounds of disparity.
Next, China has a big domestic market, over a 1.5 billion, and has over 200 million people in the middle class which is nearly the same as the entire US population.
China is expected to be make a lot of ground on the US over the next 20-30 years .
One of the long term cost effect strategies for US is to target migration of one to two children each of wealthy families in nearly all countries to live and work or do business in the states, thereby increasing its population of middle class to 400 million people to provide a competitive internal market base.
At the moment, mass migration into US is centred on young people who are going there for milk and honey without bringing massive investments dollars with them.
These are some observations to provoke thought and discussion among those who follow global trade and politics.