Friday, December 29, 2017

China trade

Now that China has demonstrated its willingness to continue to help North Korea even after saying they would join in with the rest of the countries on sanctions more must be done. China feels that the US is all talk and will not take any action against it and up to this time that would be correct. Trump can come before the American people and say the US will start placing import taxes on Chinese goods. This means the cost of goods that consumers buy will go up and that is the sacrifice needed to keep us from using a military solution. The upside is that American made goods will become more competitive and this over time may lead to a shift to buying American on a permanent basis. America already makes better quality home appliances and many electronics and long term this would lead to higher paying American jobs. If all of this is laid out and properly explained, most Americans would understand the cost benefit trade off and be willing to pay more. This would be devastating to China whose economy still needs rapid growth to keep the people from revolting. It would be a wake-up call for them.

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