Another PBS video from Paul Solmon about the trade war between the US and China. The trade war hits China more for two reasons:
- Trade makes up a much higher proportion of China’s GDP than that of the USA
- With the Chinese economy slowing there is a big reliance on the export sector as an employer
The Chinese have certain options (see below) open to them which are discussed in the video below.
- Bond dump
- Squeezing US firms in China
- Pull back on the number of Chinese coming to US for education
- Devalue their currency
- China might make sweetheart trade deals with other countries leaving out the US
Well done Mark, your blogs are always excellent and well thought out a real bonus for Economics learners. Thank you for sharing them it is most appreciated.