I have a questions. If President trump were to cut trade ties with China, how would this affect the US economy. I want China to be punished for COVID, but will cutting trade affect us too?
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I have a questions. If President trump were to cut trade ties with China, how would this affect the US economy. I want China to be punished for COVID, but will cutting trade affect us too?
Cost of living would go up for certain shit. India would become our new "China" and companies would probably not be happy for the months it would take to move their own (not contracted) manufacturing facilities.
China would possibly call in debt in retaliation: which would raise interest rates and slow down economic growth (i.e. force us to adapt).
Sure it would affect our economy. China steals billions of dollars worth of intellectual property from the USA each year. Ending that, we would come out ahead.
At the same time, there are more than economic reasons to de-couple with China, mainly the survival of our republic.
If you are interested in economic issues regarding China, I suggest you follow Kyle Bass.
Here is a recent interview where he discusses this very topic;
https://www.youtube.com/watch?v=hKRefsZWoGQ
Thank you for the video!
But China will be screwed too right?
China must have access to the US market...they have built their entire manufacturing economy on it. China would not survive decoupling....certainly not as a world superpower.