Responses to Facebook chats.
PRESIDENT Trump's 4-year goal: Bring manufacturing back. The last year the United States had a trade surplus was in 1975. Yet the year that many U.S. companies started to really move, build or partner (in) factories in China (and elsewhere) was in 2001 when China was accepted into the WTO as an MFN. That was a year after Bill Clinton signed a trade pact with Jiang Zemin. A few years later, China gained leverage per tariffs. Thus, globalization took off as a neo-liberal pitch.
Note: China owns the largest labor force ($4/a week pay, something) and massive deposits of pertinent raw materials as they scattered loans and investments (FDIs) in many countries. Actually, they started buying lands overseas in the 1970s in Deng Xiaoping's years. Fast forward, 2009: the BRICS "emerging economies" trade bloc was born. And in 2012, Russia entered the WTO.
These wobbled G7's global economic domination. And as the U.S. focused on wars (Afghanistan then Ukraine and Gaza) and a widening divide internally, BRICS expanded to gain more members in the Middle East (+ Ethiopia and Indonesia) and China's BRI (Belt and Road Initiative) solidify China's global trade expansionism (more money tossed in MENA).
Right now, there are 8,619 American companies in China. Luring them back can be hard as China matches Mr Trump's tariffs. More importantly, China's cheap but coherent labor and ample natural minerals like silicon and lithium and APIs to drugs. Or those U.S. companies may just move across the border to India and Indonesia. 🇺🇸☮️🇨🇳
HENCE, Donald Trump looks for instead. America is still #1 consumer market and top marketing showroom with superstar endorsers. And the US dollar is still the global legal tender. Recently, South Korea's Hyundai, Taiwan's TSMC and Japan's SoftBank expressed willingness to invest in the U.S. (Japan is top investor in the US; Canada owns 33 percent of foreign-owned lands here).
Question: Labor. Joe Biden's $6 billion to TSMC in Texas didn't work because workers are unskilled to make semiconductors. (Note: Joe let in migrants in record numbers. Figure out why.) But now TSMC offers to train with its own money. Concessions? Yet still silicon etc come from China, Russia, India and other BRICS partners.
China also gathered 14 economies in Asia Pacific in 2020 to form the RCEP, the largest trade bloc so far. Etc etcetera. The D may run out of time so I see an end game before 2028. His second trade pact with Xi Jinping.
Anyhow, hawks in Washington believe that the only way to break China is to provoke it into a war in the South China Sea. But Mr Trump doesn't dig that playbook. I don't either. China doesn't like wars. Bad for their massive global business and BRI construction. Trump (and RFK Jr and JD and Musk) also see military brinkmanship as a waste of taxpayer money. 🏛🗽🏛
FOR the meantime, Mr Trump dares Iran to go to war. It's a bluff, I believe. POTUS is applying the pressure on Tehran because Iran's hardliners back the Houthis in Yemen. The Houthis are still making a mess in the Red Sea. Mr Trump wants the leader of the Houthis taken out. Remember, he erased ISIS’ Abu Bakr al-Baghdadi and General Qasem Soleimani in his first 4 years.
Note: Iran's top oil buyer is China, the world's #1 oil importer. Infuriating the CCP by derailing Tehran's oil shipment to China is not a cool tactical move to bring the Chinese to the negotiating table as what Mr Trump did in early 2020. He knows he's not done talking because he lost the election in that year.
Complex, isn't it? Ah. All the rest are simply doomsday pitch by the media, which are essentially owned by corporations. Panic buy, you know. Profit grade. 🏛🗽🏛