tech

China prepares tech sector for battle as U.S. trade team arrives

6 Comments
By Ryan McMorrow

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Negotiations on tariffs and trade are now in very active mode with China. This is exactly as it is supposed to play out. Make threats and stick to them, then negotiate a workable deal. That is exactly what is happening. China cannot afford a real trade war with the US, so in the end it will get resolved.

In the end there will be new trade deals with everyone. Trade is like N Korea. Until now, nobody believed Trump meant what he says, and now they know better. They only had to understand how Trump operates, and that he is really willing to walk away and let the other side crawl back.

Things will get worked out because that is what developers do best- they find ways to get the project built. It just took 15 months for the world to understand Trump is prepared to walk from the table and take the heat is key to any negotiation, and Trump plays that card well. Not understanding what he is really willing to do is an asset, not a liability. His oft stated line- we will see what happens is just a way to leave everyone guessing.

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Both companies depend on U.S. chips to build their gadgets and equipment, reinforcing for Beijing the need to control every piece of the technological supply chain.

China must rely on itself for core technologies, President Xi Jinping told scientists when visiting an IT firm last week.

That thought flows both ways.

The U.S must be reliant on itself and perhaps Europe for the brains behind their technological supply chain. Going with China is a monumental mistake. Further, the U.S should focus on shifting the nuts and bolts of their supply chain out of China with the intention of creating friends and partners elsewhere, like India, like big South American countries, Brazil etc. China is not the only game in town, not even close.

Before boarding a plane for talks in China, U.S. Commerce Secretary Wilbur Ross called the plan "frightening", and noted the trade deficit was in part "inspired by evil practices".

The blame should also be apportioned to U.S companies for be willing accomplices in the process. I wouldn't say its evil, it just highlights the differences in values between China and the West. China has even fewer scruples in trade than the U.S does.

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U.S. Commerce Secretary Wilbur Ross called the plan "frightening", and noted the trade deficit was in part "inspired by evil practices".

Helluva thing for a Commerce Secretary to say, on his way to negotiations. I can imagine how unfriendly that table will be, in spite of the fake smiles.

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Wilbur Ross stated the truth that cannot be denied. The truth is the truth.

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Trump is prepared to walk from the table and take the heat is key to any negotiation, and Trump plays that card well. Not understanding what he is really willing to do is an asset, not a liability. His oft stated line- we will see what happens is just a way to leave everyone guessing.

Obvious you've no clue about the cards on the table. Besides that a trade war has no winners many T clowns are not aware that Made in the USA can't fill up the gaps that will hit the domestic supply chains sooner or later. There are no manufacturing facilities, no or backward manufacturing knowledge and no skilled and educated labour to get it done. It will take at least 2 decades to set that up. US agribiz and farmers will not find an quick alternative for the 20 billion dollar export market to China only.

Everyone guessing? Yep ! :)

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China has even fewer scruples in trade than the U.S does.

Amusing really :)

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