Huge China trade policy reversal

Blu82 said:

I'll take an L if I earn one.

Now, back to your safe spacePretending you’re black and live in Pasadena. You are both well outside of your element.

greenblood said:

MikeDamone said:

Chintresting https://www.ibtimes.com/infographic-us-china-trade-deficit-widens-despite-tariffs-2752756

The deficit is getting larger because of the slow down in the Chinese economy. They aren't importing as much raw materials as they had previously. Hopefully the president isn't stuck on deficit vs surplus in this trade war, because they are irrelevant in the grand scheme of things. This trade war should be about one thing and one thing only, and that's intellectual property theft. China is putting a hard line on intellectual property theft, because it is the only way they can continue to grow. The Chinese economy is so overburdened with debt, that they can not afford their businesses to invest resources on R&D. The Chinese debt to GDP ratio as of mid-2017 was hovering around 256% (Figure taken from Bloomberg). To put this in perspective...We? talk about how bad our? debt ceiling is... well...The U.S Debt to GDP ratio as of the same time was at 107%. So basically, China's debt problem is 2.5 times worse than the U.S.

China has also promised to double their economy by 2025. They can't do that by playing fair, unless they take out a shit load of new debt, which they realistically can't. The only way to have any chance of achieving this goal is to do things business as usual. The tariff's were designed (at least I hope) to put pressure on this idea.