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Trade war or not, China Inc already reining in American brands

5 Comments
By Adam Jourdan

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One of the few reasons for the U.S to curtail tariffs is the impact on U.S brands operating in China. If these trends continue, then there is increasingly little to lose for Trump to push ahead with his tariffs, force U.S companies to look outside of China for growth. Same applies to Europe.

Wont be long before Europe starts putting up tariff walls as well against Chinese companies to protect their own and avoid mass unemployment, especially in the age automation.

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Those who can't compete put tariffs. They'd also be dumb to do that to a country that has one of the fastest growing middle class consumers in the world. By then, their domestic companies will take all the cake.

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Those who can't compete put tariffs. They'd also be dumb to do that to a country that has one of the fastest growing middle class consumers in the world. By then, their domestic companies will take all the cake.

They will anyway. The Chinese system is heavily weighted towards preferential treatment of local players. This is common knowledge in the U.S and Europe. There is no strong future for U.S or E.U exports to China, there is only gradually losing market share and IP in an effort to compete with a government that is hostile.

The sooner Europe faces that reality like the U.S has, the better.

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The sooner Europe faces that reality like the U.S has, the better.

It won't be better for them. That's why they'll appease to get inside their market, like they always do.

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You can read this article to see the signs of what lay ahead for foreign companies. No other country on the planet puts in place the level of barriers and political interference on private enterprise that China does. And it may force foreign companies, as this article suggests, to increasingly act against the interests of their own country, which is one of the reasons Huawei in Australia faces stiff examination.

https://www.theguardian.com/world/2018/jun/28/chinas-social-credit-system-could-interfere-in-other-nations-sovereignty

I support free and fair trade globally, but not with China. They simply do not play by the same rules as everybody else and if their social credit system and requirements for communist party members to be present in the Chinese HQ of foreign companies starts to impact on security of the home countries these companies hail from, then obviously its not acceptable and business ties will have to be cut.

The more China approaches things this will, the faster the rise of India, S.E Asia etc.

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