By on June 25, 2018

Trump

The Trump administration is planning to impose incredibly restrictive investment limits against China. While the barriers could be argued as fair, considering China has some pretty serious restrictions of its own, the timing isn’t great. Treasury Secretary Steven Mnuchin pursued a less confrontational approach toward China after the nation showed some lenience in earlier promises to open its automotive and tech sectors through reduced tariffs, eventually eliminating state-mandated joint partnerships.

This move will no doubt make his job a lot more complicated.

It seems that the limits would restrict certain Chinese companies from investing in U.S. technology firms and block additional tech-related exports to Beijing. Among the industries most affect are robotics, aerospace, and automobiles — which have been labelled by the administration as a threat to economic and national security. 

Mnuchin denied the measures would be aimed at China specifically, but the Nikkei Asian Review and most other outlets see the move as a blockade to President Xi Jinping’s “Made in China 2025” initiative. The program is intended help make the People’s Republic towards the global leader of all high-tech industries and expand its influence across the globe.

Officially, very little has been said on the Trump administration’s trade proposals. However, insiders claim the measures are set to include rules that would bar firms with at least 25 percent Chinese ownership from buying companies involved in any technology deemed important by the White House. There are also rumors that the White House will forbid tech exports to China of a similar nature.

It’s unclear how this would affect automotive exports into the country, though many have accused China of being incredibly lax in terms of intellectual property. The car industry has dealt with this issue for quite some time. Trump has been careful in wording the accusations against China, but others have not.

“The goals of Chinese policy are easily summarized: they wish to extract technologies from Western companies; use subsidies and nontariff barriers to competition to build national champions; and then create a protected domestic market for these champions to give them an advantage as they venture out in the world,” James Andrew Lewis, a senior vice president at the Center for Strategic and International Studies in Washington, said roughly a year ago.

He faulted Western companies for chasing the short-term dollar, or laying down in order to gain immediate entry into the Chinese market. His assertion is that the only way to beat China is to accelerate industry and technological achievements through new IPs, while also hoping China will eventually adopt U.S. trade norms.

That doesn’t appear to be the route we’re going. On May 29th, President Trump said “to protect our national security, the United States will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology.”

While China hasn’t weighed in on the current U.S. proposals as of yet, the country’s leadership has previously said it will retaliate with measures of “the same scale and intensity.”

Hopefully, you weren’t expecting to drive a Chinese-built electric car anytime soon. We get the feeling it might be a while before you have the opportunity.

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100 Comments on “Trade War Watch: U.S. Preparing to Limit Chinese Investment...”


  • avatar
    Sub-600

    This will lead the left to champion China, much the way they now embrace MS-13. Trump is crazy like a fox.

    • 0 avatar
      TwoBelugas

      For all the previous admin’s talk of “pivot to Asia”, this is how it is done. Japan, Korea and Taiwan should be very concerned with the China 2025 scheme because it’s designed directly to not only emulate, but supercede the 3’s place in technology and manufacturing independence. The same selling out that GM and Ford have been accused of doing(I think FCA may be the least dependent on China at this point), Japan has been hit with the same problems and went the same joint venture routes, but rewarded with less marketshare.

      • 0 avatar
        Peter Gazis

        Two Belugas

        Japanese cars don’t sell well in Europe either.

      • 0 avatar
        ect

        TwoBelugas, this is definitely NOT a “pivot to Asia”. Japan, South Korea and Taiwan have been and are concerned about China, which is a strong part of what motivated the creation of TPP – a prime effect of which would have been to firmly link their economies to that of the US, and away from China. Which is why China was so vociferously opposed to it.

        Trump gave China the HUGE gift of walking away from TPP, which will now go ahead as a treaty of 11 countries, but without US participation. For the US, this is an economic mistake and a foreign relations disaster.

        But Trump got to curry favour with Xi Jinping, as he did with surrendering on ZTE, so it must all be worth it….

    • 0 avatar
      bd2

      It’s been the Republican party that has long “championed” China due to the big business bloc of the Republican party.

      The left, meanwhile, was the one that wanted more accountability when it came to things like Human Rights (which Drumpf has all since abandoned, being the wanna-be dictator that he is).

    • 0 avatar
      Peter Gazis

      Sub-600

      Crazy like a Fox or Dumb as a box of rocks?

    • 0 avatar
      notapreppie

      MS-13? You mean that loosely affiliated group of hyperviolent, skinny-jeans wearing, baby-faced school kids?

      https://www.npr.org/2018/06/26/623451416/propublica-reporter-delves-into-covering-ms-13-street-gang

  • avatar
    "scarey"

    Trust the Plan.
    Trump has a plan. Obama only had ‘hope’.
    Hope is not a Plan.

    • 0 avatar
      Lou_BC

      Looks like someone has a whole lotta ‘hope’ that Trump has a plan.

    • 0 avatar
      bd2

      Drumpf has no plan but to try to appease his nutty base.

      • 0 avatar
        "scarey"

        Are you intellectually challenged ? (Liberal-speak for that ‘R-word’.) By mis-spelling the President’s name you reveal your lack of 1) ability, 2) judgement, and 3)class. You only impress your fellow Low-IQ residents, no one else.
        Have a nice day. We Trump supporters have had over 500 nice days in a row !
        How about you Hillary voters ? Oh.

  • avatar
    Fred

    Can I ask that TTAC stop putting up these Trump bait articles?
    ps I’m not clicking on the Notify button, because I don’t really want to hear all the discourse that’s going to follow.

    • 0 avatar
      thejohnnycanuck

      Why? What would you rather read about, a policy which could very much affect the economy in general and automakers in particular or another Tesla fluff piece as so many sites are wont to publish ad nauseam.

      Or are you just another Trump hater on general principle?

    • 0 avatar
      notapreppie

      I dunno… I kind of think that TTAC are a bunch of master… baiters…

      HAH! I kill me.

    • 0 avatar
      brn

      Agree with Fred on this one. The article is only loosely related to cars. It’s yet another article to get posts where people post hate about the opposite party. Definitely baiting.

  • avatar
    "scarey"

    Trump-bait articles draw the volume of responses.

  • avatar
    TW5

    China has been misallocating capital and embracing fundamentally faulty government expenditures for some time. The equal and opposite reaction to America’s vast trade deficit is either a corresponding decline in the dollar relative to the currency of our trading partners or a huge surplus of capital flowing into the United States from our trading partners.

    For too long, foreign banks and foreign companies have poured excess capital into the US market, which has destabilized the stocks, commodities, and real estate. The result is inflationary pressure in all nations. The US has demand-pull inflation due to excess consumption of assets in the US, including real estate, and cost-push inflation in our trading partners who are effectively devaluing their currency, making the cost of manufacturing inputs relatively more expensive.

    The current trading regime could charitably be described as mutually assured destruction, and it’s insane that the last 3 American presidents have been too timid in their response to the problem or they’ve been helping the system expand.

    These new rules will help prevent the export of US intellectual property, but they will hopefully also lead to a rebalancing of trade and capital to a more traditional arrangement, featuring deficit spending by rapidly developing nations and lawful export of intellectual property from the developed world to help developing nations sustain growth.

    • 0 avatar
      Lou_BC

      @TW5 – I’d say it is more a case of “helping the system expand.” than being timid. The “system” only benefits the global 1% but even now, there isn’t much being done to deal with all of the wealth and power concentrated in that 1%. Other presidents ignored or avoided the problem.
      T-rump’s approach is to blame foreign “actors” which sets up a “us/US versus them” scenario, justifies the insane expenditures on the military, and sells well to the populace that is most likely to join the military.

      • 0 avatar
        "scarey"

        @Lou_BC— “Trump’s approach is to blame foreign actors”
        Since when have other countries acted in our interests ? And what other Presidents have done anything about it (except Reagan, who limited the number of Japanese car imports, and put a 25% tariff on foreign motorcycles over a certain displacement.) Reagan was THE exception. Other Presidents either looked the other way (Bush41/Obama), or actively gave jobs away (Carter/Clinton/Bush43).
        America had NO victories during the 8 years of Obama. Trump is reversing that.
        China=intellectual property thieves/currency manipulators. And the Chinese only play hardball. Trump does too. Bush41/Clinton/Bush43/Obama did not even understand hardball.

        • 0 avatar
          Lou_BC

          @”scarey” – In relation to China, they have gotten powerful because USA corporate leaders set up shop there to exploit *for profit* China’s lack of concern for human rights and environmental stewardship.
          As China grew economically and gained power, they set up “partnerships” to extract intellectual property and if they could not get it that way, they stole it.
          It is much easier to blame China than blame greedy western leaders/industrialists who went there for profit. T-rump doesn’t blame the top 1%. T-rump talked about draining the swamp but the inflow and outflow of that swamp is controlled by that 1%. “Globalization” is also set up to enrich that same 1%.
          China is now in a position where they will be very difficult to “correct”.

          In relation to Japan, the USA auto industry was producing complete sh!t at the time. The “voluntary restraint” program did little to stem the tide other than to encourage domestic car makers to continue producing crap. The Japanese passed on costs to the consumer and in the end, Japanese cars still took over the market and it cost USA consumers billions due to increased purchase costs.
          Tariffs on motorcycles may have saved Harley Davidson but it looks like they are still going to die because like any outdated dinosaur, they cannot survive the “heat” of competition.

          Most jobs have been lost to automation. The “race to the bottom” hasn’t helped but is only a small portion of those lost jobs. Farming is a good example, it was a huge employer of people. How many people does it take to run a modern farm?

          • 0 avatar
            "scarey"

            @LouBC—I agree with what you say. Except that Trump IS draining the swamp. Look at all of the CEO resignations and the number of politicians who are quitting or not running for re-election. Get your popcorn and watch the show. There will be a few surprises.

          • 0 avatar
            Lou_BC

            @”scarey” – There is common ground to be found on the left and right of the political isle if we take the time to talk to each other but more importantly, listen to each other.

  • avatar
    Sub-600

    Trump-bait articles dealing with the Chicoms are important to the automotive industry.

  • avatar
    Whatnext

    China should retaliate by limiting its investment in US Treasuries. Then we’ll see who wants to finance Trump’s massive deficits.

  • avatar

    I suggest to transfer all technologies (with Silicon Valley included) to China and close the shop – no new IPs from USA. Since we will not produce IP anymore where they are going to steal IP? Moving Silicon Valley with all liberals attached will cause cultural revolution in China and eventual fall of Communist regime.

  • avatar
    Charliej

    If you want to see the future of the US look at Britain today. Britain used to be the strongest country in the world. Then two world wars took their toll on the country. Britain could not monetarily afford to challenge the US. And even if she could, there was nothing that she could do to stop the ascension of the US to being the world leader. The US of all the countries in World War Two was not destroyed by the war. The US ended the war in first place in the world and assumed that it would always be in first place. However the US did not put money into staying in first place. The steel industry was one of the first to fall. US produced steel could not be made as cheaply as foreign steel. People will blame cheap foreign labor but that is not the only reason. As the other countries rebuilt their industries, they used newer technologies and were able to harness these technologies to surpass US steel manufacturers. Then it was the auto industries turn. Japan used the ideas of Edwards Deming to improve quality in their cars until they were above American cars in quality. A position that they have yet to give up.

    Now China is challenging the US in manufacturing. The US is in the position of Britain after World War Two. A smaller country trying to compete with a country that has a population four times higher that her own. After World War Two, America sent millions of soldiers to college on the GI Bill. These college educated men helped to lead our country into a golden age that has not been surpassed. That golden age will not be surpassed as too few Americans are getting an advanced education. Put bluntly, there are not enough good men and women to bring our country up to where it needs to be to successfully fight the Chinese. China graduates many times the engineers that the US does each year. The best of these engineers are working on improving their country in ways that we can not dream of.

    In the near future, China will pass the US as the largest economy in the world. It has already happened in the auto industry. China builds over twenty million cars per year. They will only go on to an ever larger lead over the US as more of their people attain the means to buy a car. The US worries about China militarily. China does not need to do anything militarily. China can just dominate the world economically and there is nothing that the US can do about it. A market of one and a half billion people will consume more than a market of three hundred thirty million. It is simple math that tells one this. In automobiles one can already see the first signs of this. Autos are designed for China, then adapted for the rest of the world. It used to be that autos were designed for the US then adapted for the rest of the world. In this I am talking about large cars from Europe and Japan. China likes cars with plenty of rear seat legroom. Mercedes and BMW cars sold in China have larger rear quarters than the same cars in the US. Ford and GM both have cars sold in China that are not seen here. The larger rear quarters are not wanted in the US.

    The twentieth century belonged to the US. The twenty first century belongs to the Chinese. They simply have not seized it yet. America can be a friend to China or it can be an enemy of China. Top China it does not matter. China will have the economy that will be the envy of the world. America will be the equivalent of Britain. A country that used to be the world’s leader but now is a second rate country.

    You will notice that I have not mentioned Trump in this. He does not count in this contest between countries. There is nothing that he can do to slow the ascent of China. He can not slow the decline of the US. In fact, his policies will likely increase the rate of decline for the US. But overall he is nothing at all.

    It pains me to see the US in decline. I served my country over fifty years ago. I was proud to wear the uniform and do my part for the country. It is painful to know that the US will no longer be the top dog in the world. On the other hand, we have seen some of the misadventures that the US has got into over the years. We can only hope that China uses a little more wisdom than the US in getting into misadventures.

    I am old enough that I will not know how this all turns out. It is the younger folk who will have to live with the results of the change in power. I can only hope that it is a peaceful change.

    • 0 avatar
      DeadWeight

      The U.S. is 45 years behind the U.K.

      The paths are so similar that it’s incredibly striking.

      The worst part is that with a) a coastal fintech (financial-technology) sector that massively amplifies U.S. wealth inequality, and b) a future failure of U.K. or EU type safety nets (ours is already magnitudes worse in terms of public health, education, etc., and is being cut in real terms with each passing year, as military, corporations, the top 1/10th of 1% get massive subsidies and tax cuts), on our projected course, the U.S. will resemble The Hunger Games in about another 1/2 generation.

    • 0 avatar

      It is not a good comparison. Britain was a colonial power. After it lost all colonies it become the small country with very limited resources just like Germany and Japan even worse. USA is huge country with lot of natural and human resources protected by oceans. US does not rely on colonies. Countries you can compare US with are few and far between: Russia, China, may be India or may be not, may be Brazil but rather not. Yeah so only Russia and China. Neither one can realistically challenge USA because both are nondemocratic authoritarian regimes with capital and brain leak. China and Russia exports brains and wealth to US and to some extent to EU and Britain. I would never keep my money or my brain in Russia or China if you want to know my opinion.

    • 0 avatar
      TTACCATT

      Well worth the read.

    • 0 avatar
      28-Cars-Later

      Well written post.

      “That golden age will not be surpassed as too few Americans are getting an advanced education.”

      False, the highest level of post-secondary education ever measured was recently.

      “Just over a third of American adults have a four-year college degree, the highest level ever measured by the U.S. Census Bureau.

      In a report released Monday, the Census Bureau said 33.4 percent of Americans 25 or older said they had completed a bachelor’s degree or higher. That’s a sharp rise from the 28 percent with a college degree a decade ago.

      When the Census Bureau first asked respondents about their education levels, in 1940, just 4.6 percent said they had a four-year degree.”

      http://thehill.com/homenews/state-watch/326995-census-more-americans-have-college-degrees-than-ever-before

      “The best of these engineers are working on improving their country in ways that we can not dream of.”

      Despite corruption in their culture, this is very true and it remains so because they engineer for the good of their people. Not so in the US, everything is me-me-me, from unions, to kickbacks and back door deals. There is no longer a “we the people” mentality, probably because the fake news has been eroding it for at least the past two decades.

      “A country that used to be the world’s leader but now is a second rate country.”

      Already there and it didn’t even take very long.

      “Autos are designed for China, then adapted for the rest of the world.”
      “China likes cars with plenty of rear seat legroom”

      I get what you’re saying and yet much of what is being sold here is the opposite.

      “We can only hope that China uses a little more wisdom than the US in getting into misadventures.”

      I suspect they will, for awhile at least. If they allow their own people and culture to be usurped in the upper echelons they will be finished long term.

      • 0 avatar
        Erikstrawn

        Plenty of people getting college degrees, not enough people getting educated. Universities have thrown out education for the cash cow of being gatekeepers to the promise of a good job. Pay the college enough money and they’ll hand you a piece of paper that you can show to employers to get a $35k/yr trained-monkey job until the next economic downturn. Hey, it’s better than a $25k/yr job flipping burgers!

        • 0 avatar
          threeer

          Sure…come out of a four-year degree with $90k in debt. We’ve oversold the worth of a degree when it comes to finding meaningful work. Everybody wants the corner office, but nobody wants to build it.

          Sad thing is, countries like China play the long game. The US is not very good at that. The three-legged stool (government, business and the consumer) would rather see immediate profit and cheap products over national strength, prosperity and independence.

      • 0 avatar
        Charliej

        Thank you for the nice reply. On education, the question is what kind of education are today’s young getting? When I started college fifty four years ago college was not merely a glorified trade school. I majored in chemical engineering. But I was required to take many other subjects as well. In those days college was supposed to turn out well rounded people. Now any subject that does not directly contribute to making money is frowned upon. Being well rounded did not hurt me in life. Besides making money I also enjoyed learning what I could about a lot of other subjects. One of the joys of college for me was learning how to learn. Too many people seem to think that when they leave school learning is done. That attitude must be done away with.

        I am an optimist by nature. I always see the best that can happen. This served me well when I ran a business, as I was always open to new opportunities. Some paid of, some did not, but there was a net gain over all of them. My optimism is failing with the decline in the US. The infrastructure is failing fast and no one in power cares. The huge differences in income has created a permanent underclass. And it is not just blacks and Hispanics who inhabit this underclass. I was reading a nes article this morning about how many farmers are committing suicide. They can not cope with the forces damaging their lives and futures. Suicide is also rampant among middle aged white men. They see that their dreams will never be and can no longer cope. There is a perfect storm of despair hitting the US at this time. Most people see no hope of a better life in the foreseeable future. The country must do better for it’s people.

        • 0 avatar
          Arthur Dailey

          @charlieJ: Thanks so much for your comments/posts.

          Indeed as the POTUS said when campaigning “what have you got to lose’. The frustrated, dispossessed and disenfranchised, and those whose dreams have been crushed or who worry about how their children will get by, seem to have agreed.

          • 0 avatar

            You guys are turning children into cult. American children are spoiled to say the least. Children will get what they deserve. No one is going to solve their problems for them. In other countries children take care of parents not vice versa. I do not care if they commit suicide or not. I was in desperate situation and not once and I am alive and well.

    • 0 avatar
      bd2

      Speaking of what many Americans consider the “golden age” – the 1950s to the mid-1960s, that’s when the American middle class was the strongest and when the disparity btwn the wealthy and working class was the lowest.

      This had to do w/ the high personal and corporate tax rate (such high tax rates, 90% for the top earners are totally unfeasible today) – which was used to not only pay down the WWII debt, but pay for the benefits of the GI bill (free tuition, low mortgage rates, etc.) as well as huge govt. spending projects like the US Interstate system.

      But since the 1980s – we have seen policies implemented which favored the wealthy and big corporations, where today, the disparity of wealth is the greatest it has been since the Age of Robber Barons.

      But it’s not just the US, but countries all over – Australia, the UK, SKorea, India, France, Germany, Japan, Taiwan, Vietnam, NKorea, Russia, Nigeria, South Africa, China, Pakistan, Mexico, etc. – no matter the differences in economic and political systems.

      Not surprisingly, the wealthy have a hold on politicians (or hold the power themselves) and implement policies which further enrich themselves.

      • 0 avatar
        Sub-600

        “…advanced education.” What kind of education are people receiving in academia today? It’s been a race to the bottom for many years as far as admissions and standards are concerned, Someone recently suggested that kids should save themselves the average $27K college debt by showing up at job interviews with their SAT scores and college acceptance letters. Good idea.

        • 0 avatar
          Arthur Dailey

          Training for specific trades is generally a short term solution as many of those jobs will cease to exist and a great many jobs will arise that do not currently exist. During my career, I have seen a number of college programs close down as they become technologically obsolete and their graduates have to turn to new careers.

          Post-secondary (university) education is meant to develop the ability to think critically, to develop an appreciation of learning/knowledge, to acquire the ability to learn things quickly, to differentiate between fact and anecdote, to develop some knowledge of history/philosophy, and to prevent us from acting like herd animals. It is not meant to turn out worker drones.

          Dictators and foreign conquerors/occupiers traditionally eliminate the academic ‘class’, close universities or take control over who teaches and what is taught. Often they try to turn the masses against the academic ‘elites’.

          • 0 avatar
            Charliej

            Coming from Alabama, I know about the distrust of the “educated elite”. In Alabama politics it is an actual barrier to election to have a college education. Politicians strive to disguise their college degree. Since so many politicians are attorneys they have campaign ads showing them hunting and shooting to cement their love for the common man. The “elites” are often targeted for ridicule. When I was in the submarine service we were often told that we were the elite of the sailors in the Navy. I was proud of that distinction. I guess that I am a member of that “educated elite” as I went to college and kept learning through out my life.

          • 0 avatar
            "scarey"

            Colleges now turn out drones. They must all conform to the hive-mentality. Conservative or non-left speech is prohibited, Whiteness is condemned as a sickness and anti-whiteness is taught in required classes. Opposing spokespersons are dis-invited to commencements and speaking engagements. If I were hiring a potential employee, a college degree at many universities would be two strikes against the candidate. Look at the University of Missouri and Evergreen University for proof.

          • 0 avatar
            Hydromatic

            “Whiteness is condemned as a sickness and anti-whiteness is taught in required classes.”

            Hmm….that must have been an elective back when I was in college. Then again, I didn’t spend my time indulging in conservative victimhood or worrying if my race was going to go extinct or not.

    • 0 avatar
      Big Al from Oz

      charliej,
      Great read. And somewhat accurate.

      I do believe the US needs the support of most OECD economies behind it.

      We (modern OECD) need to form a multilateral block to maintain our lead over China for the foreseeable future. This is the only way.

      The US will be able to maintain its influence as well.

      Trump is destroying this block and alienating the US. This is giving the Chinese the opportunity to advance its cause.

      The US can’t do this on its own or its terms as it doesn’t have enough weight to counter the Chinese.

      Trump with his America first agenda also is causing much damage to the US with its Allies.

      All Trump is achieving is disruption with no positive outcomes for all parties. Being divisive and disruptive will accelerate the US’es decline.

    • 0 avatar
      TW5

      There are few economic similarities between the US and Britain. The US is a large resource-rich land mass with the world’s largest tract of arable land. The United States is obviously not a mercantile nation, hence our massive trade deficit, and we are not sending our military around the world to secure vital inputs of production for the American manufacturing sector. The US is not engaged in frequent world wars with other global superpowers.

      Britain extinguished its flame by trying to dominate the world using an unsustainable economic arrangement whereby they exported everything, imported nothing, and hoarded resources, which causes immiserizing effect and economic decline. In short, the monarchy and subsequent parliaments failed to live up to the free-market systems they more-or-less discovered.

      The US has a completely different problem. Our country rose to prominence via an accidental populist economic correction. After the Great Depression the marketplace had an augmented aversion to risk. Neither the people nor public officials were investing in an appreciable way in the US economy. World War II created a huge boom in public expenditures, particularly in manufacturing and technological development. This is more or less how the modern US middle class was born; government demanding machines and technology from the people. These devices and technology percolate throughout the entire economy creating economic booms.

      In fact, the machines we were building frightened most of the world, both private industry and public defense. Britain responded by joining the EU, which was the final nail in their coffin. They once enjoyed a relatively high standard of living thanks to trade with their former colonies, but they rejected their allies to show solidarity with Europe. Monumentally stupid. Income and quality of life have risen sharply in the US, Canada, and Australia. The UK was left behind.

      The US has experienced decline for several reasons, none of which are similar to the UK. First, we’ve stopped public investment, and we’ve built huge transfer payment systems. Military, infrastructure, space exploration have dropped from about 13% of GDP in the 60s to just 7% of GDP today. The US, unlike the UK, maintained very open and liberal trade policies. Slowly but surely foreign nations have learned how to abuse these policies and operate as an anti-American cartel in the WTO, IMF, etc. The time to fight was the 90s, when everyone (but the CBO) could see what was coming down the pike. Unfortunately, the average person was not awake until the credit card bill hit $20T. Sad.

    • 0 avatar
      Lou_BC

      @Charliej – thanks for that post. Well said.

  • avatar
    jacob_coulter

    It’s funny to me that the same liberals that swore up and down to the working class, union members that they were going to do something about globalism killing their jobs are now fit to be tied over Trump actually giving them what they’ve been demanding for over 50 years.

    Suddenly, “Free Trade” is the most sacrosanct policy in American history. We’re not even allowed to renegotiate trade deals even when there’s legitimate national security concerns.

    • 0 avatar
      bd2

      It’s actually the Big Biz Repubs (who brought about NAFTA and the exporting of factories to China) that have more of a problem w/ Drumpf’s tariff policies.

      Dems tend to have more of an issue w/ Drumpf’s strategy (if he has one).

      A for legitimate national security concerns, the one over ZTE is way more legit compared to the auto industry.

      • 0 avatar
        28-Cars-Later

        SMH.

        youtube.com/watch?reload=9&v=0fi8OOAKuGQ

        youtube.com/watch?v=wwmOkaKh3-s

        youtube.com/watch?v=P_Zqbg6QThg

      • 0 avatar
        DeadWeight

        There’s very little difference between establishment Democrats and Republicans.

        The DCCC will only financially back candidates that campaign on social wedge issues such as LGBQT, abortion, etc., and not concrete policy contrasts.

        Democrats entire platform is to be just to the left of Repubs on major, concrete issues, in not any real, meaningful way, so as to not offend the same fintech campaign contributors who also fund Republicans, while running on social wedge issues.

        Until there is a viable, strong 3rd party, which can’t come about easily because of Citizens United SCOTUS decision, democracy is all but dead in the USA, and a % of the American Population that’s literally no larger than 1/2 of 1% controls who is nominated to run in primaries, and who therefore has any shit of sinning office, whether an R or D.

      • 0 avatar
        "scarey"

        @ bd2—Bill Clinton signed the North American Free Trade Agreement. Look it up, sonny. Bill Clinton is a Hero of the Peoples Republic of China.

        • 0 avatar
          TwoBelugas

          Willie Clinton also sponsored China’s “Most Favored Nation” status and entry into the WTO.

          “Yeah fellas, once they have the money, they are no doubt gonna turn into a modern democratic society.” Said virtually every talking head economist and foreign policy expert. A few cold war era security hawk type commentators predicted that an industrialized China would be ever more oppressive and start throwing its weight encroaching on their neighbors, but they were dismissed as kooks and anti-progress.

          • 0 avatar
            geozinger

            TwoBelugas: Richard Nixon favored MFN status for China; Carter initiated it. Every President afterward has to approve it yearly. Clinton had the chance to not approve it back during his term (I forget the exact circumstances now), but approved anyway.

        • 0 avatar
          Charliej

          Bill Clinton signed the NAFTA agreement but it was negotiated by George H. W. Bush and the republican congress before Clinton was elected.

          • 0 avatar
            "scarey"

            Carter, Bush41,Clinton,Bush43, and Obama were all Globalist cucks. Their mistakes are being dealt with and some in the previous administration *cough-Clinton-cough* may be going to jail. Unless she Arkancides herself first. Also Lynch, Comey, and some others.

    • 0 avatar
      DeadWeight

      Both the Republicans & Democrats were responsible for NAFTA, Chinese MFN Trade Status & GATT.

      There’s very little difference between establishment Democrats and Republicans.

      The DCCC will only financially back candidates that campaign on social wedge issues such as LGBQT, abortion, etc., and not concrete policy contrasts.

      Democrats entire platform is to be just to the left of Repubs on major, concrete issues, in not any real, meaningful way, so as to not offend the same fintech campaign contributors who also fund Republicans, while running on social wedge issues.

      Until there is a viable, strong 3rd party, which can’t come about easily because of Citizens United SCOTUS decision, democracy is all but dead in the USA, and a % of the American Population that’s literally no larger than 1/2 of 1% controls who is nominated to run in primaries, and who therefore has any shot of winning office, whether an R or D.

      People that that are not around scumbag, sociopathic politicians and their psychopath-enabling machines do not understand that it’s a duopoly that’s almost entirely kabuki theater, and the joke is on the bottom 90% (soon to be – prob by 2030 in U.S., the bottom 96%).

      • 0 avatar
        geozinger

        DeadWeight: Wow, I actually agree with most of your post. Especially the part about a viable third party. Hell, let’s go for a fourth party, also.

        In what other circumstances do we limit our choices to just two, here in the US? Virtually none, but politics. I guess we’re all too fat and lazy to do the research. Oooh, look! A Kardashian!

        We’ve gotten the government we deserve.

        • 0 avatar
          Sub-600

          Four parties? Nothing will ever be accomplished, see: Europe.

          • 0 avatar
            geozinger

            @Sub-600: Yup, that’s always the argument.

            But really, what is getting done now?

            Logically, one party is being obstructionist to the other, let’s eliminate one. (Although, in effect, that’s what has happened anyway.)

            More choice, not less, is always better for the end user.

          • 0 avatar
            notapreppie

            That’s actually a laudable goal. Our government was designed to make it difficult to make large, fast changes.

      • 0 avatar
        "scarey"

        I agree, with most of what you said, Deadweight. Except that the democrats in the past 5 years have gone full batsh1t crazy communist-revolutionary/socialist.on us, in Obama’s last term, when he “had mo flexibility” and since Donald Trump was elected.
        The ‘third party’ that you spoke of is Trump and his team. The establishment republicans are not with him- they are mostly against him, like the establishment democrats. Note- “establishment democrats” is a redundant term. They have run everything, with help from so-called other party, for over 50 years. They hate Trump. Trump is rooting out the corruption of a virtual one-party system and as many corrupt republicans as corrupt democrats will be weeded out.

  • avatar
    "scarey"

    good post charliej–I don’t agree with everything you said but most of it is dead on. The part I disagree about is that I believe that we can come back. I don’t want to end up like England- I hope that we don’t let in so many that we are taken over by middle-easterners. The Mexicans, if they come in legally, are fine people. They share our values, for the most part. Britain and Germany would probably trade willingly for the Mexicans.
    Our financial system -the Petrodollar and the Fed fiat dollar- is finished. There may be a collapse or a reset to a system without the Federal Reserve in it. No one really knows what is coming, but I believe that our $21Trillion debt is too large to repay- ever. Trump may have to oversee the bankruptcy of the United States. I believe that he is the right man for the job of turning the country around after decades of corruption and crushing debt. Pray for him and our country.

    • 0 avatar
      Big Al from Oz

      scarey,
      The UK is still quite significant. The reality is the UK’s influence is still in decline.

      Within the UK there is strife with the Scots and Irish. To quell the internal issues the UK needs to remain in the EU.

      The UK remaining in the EU is beneficial for US interests as the UK is a conduit for US to EU activity. The EU acts as an influence multiplier for the UK.

      • 0 avatar
        "scarey"

        England, as opposed to the UK, is a muslum country now. Look at their laws. Look at the imprisonment of Tommy Robinson. Who is the mayor of Londistan ? Look at the crime and killings. Look at the trash in the streets.
        The EU is muslum also. Look at Paris- the killings, the crime, the trash in the streets. Wake up before it is too late. Muslums are destroying Europe and England.

        • 0 avatar
          IHateCars

          I’ll use some of your own advice from earlier in the thread:

          “By mis-spelling ‘Muslim’, you reveal your lack of 1) ability, 2) judgement, and 3)class. You only impress your fellow Low-IQ residents, no one else.”

          • 0 avatar
            "scarey"

            muslum is an alternate spelling. I use it to p1ss off Snowflakes like you.
            “drumph” is just showing your lack of intellect- is that all you got ?

        • 0 avatar
          Ce he sin

          Are you for real? I know many of the commenters here are somewhat to the right of Genghis Khan with side helpings of racism and xenophobia but you rather take the biscuit.
          Anyway, you tell us England is a “muslum” country and invite us to look at their laws. Regardless of the fact that England in isolation doesn’t have laws, maybe you could elaborate as to which pieces of legislation you had in mind and what their impact is. Also and while you’re at it, you might demonstrate instances where Sadiq Khan’s religious affiliation has had any bearing on his job as Mayor.
          Finally, you might show cause and effect between “trash in the streets”, “killings” and “crime” in Paris and those of its population who are “muslums”.

          • 0 avatar
            "scarey"

            Yup. For real.

          • 0 avatar
            Big Al from Oz

            Ce he sin,
            I’m actually in Paris now and have been here on numerous occassions.

            People of the ilk like scarey have liitle clue about the people of the world.

            The majority of Muslims in France are Algerian/Tunisian/Morrocan (decent, as generations have lived in Metropolitan France).

            Muslim culture is highly variable from SE Asia to Albania. Its probably as variable as different Christian cultures.

            Oddly (scarey) most French Muslims are very liberal, decent nice people.

          • 0 avatar
            pdog_phatpat

            @BOZO. Uh huh, sure you are. But hey, its your world, you can pretend to be where ever you want. (pssst guys in white coats? you hoo, over here. yes thats him, the one who thinks hes in paris)

          • 0 avatar
            Sub-600

            The BAFO European Tour wraps up next week with a sold out show at Wembley Stadium in London.

          • 0 avatar
            Big Al from Oz

            Sub,
            End of August/September I’m hoping to go salmon fishing in the Pacific NW (Washington) then to Miami to visit friends and go diving in the Keys.

            This is based on an eye op, as one of my implants is running at 75%.

            I want to try and rent a new Hemi Ram. They look nice.

    • 0 avatar
      IHateCars

      “Trump may have to oversee the bankruptcy of the United States.”

      If there’s one thing that Trump does know a lot about, it’s “overseeing” bankruptcy.

  • avatar
    thejohnnycanuck

    On the bright side these tariffs should make the Buick Envision disappear from our landscape and hopefully send a message to Ms. Barra that she’s not going to get away with turning General Motors into General Tso Motors.

  • avatar
    Sub-600

    If the U.S. can just hold on until 2020, things will be cool. I hope to see Rep. Maxine Waters leading the Democratic ticket. As the people of CA’s 43rd district already know, she represents the intellectual wing of the party. She’s got some really fresh ideas on international trade. Her character and life experiences make this her time.

  • avatar
    Astigmatism

    Donald J. Trump ✔ @realDonaldTrump
    A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end – they surrendered, they quit! The Aura will be gone and they will be taxed like never before!
    8:17 AM – Jun 26, 2018

    This is certainly starting out well.

    • 0 avatar
      Shortest Circuit

      Cheer up. Shortly we’ll learn exactly how many polacks it takes to install a saddlebag latch cover.

      • 0 avatar
        "scarey"

        Actually, the Polish are a very advanced people, Polish jokes notwithstanding.

        • 0 avatar
          Sub-600

          Yeah, the Polish stereotype had no basis whatsoever, some stereotypes do to an extent but that one was way off. Irish drinking is another one, the people of Scotland spill more booze than the Irish drink. Scotland recently raised the mandatory price of liquor in an attempt to curb drinking there, they are far and away number one in alcohol consumption but the Irish get the label.

  • avatar
    John

    China as a goverment or with proxies, has a history of going into countries investing or buying high tech or manufacturing companies, then licensing, stealing or moving does companies back to China within 5-10 years after their initial move. We in the West, and by “We”, I mean business entity’s are only interested in the next 1/4 or maybe this year, China has 5,10,25 and 50 year plans.

  • avatar
    Big Al from Oz

    TTAC attempts with these trade related articles to stir the pot has identified some great insight into the American mind.

    The fears many display in their TTAC comments suggest some are downright petrified of the current global transition in geopolitics and technology impacting jobs.

    I empathise with many in the US grappling with the lack of security they feel as the US isn’t so dominantly number one.

    The rest of us globally are encountering similar challenges, except the dominance.

    I think the pressure and realisation the US is very challenged at the moment and how the US responds to these challenges is very telling of the self decline the US is facing and how it will manage in the future.

    “After Trump” is in prision or sent into “exile” in Russia the US will become a better nation. Trump is accelerating the decline of American Exceptionalism.

    The biggest issue in the future will be the atonement required by the US to rebuild relationships and trust with friends and even foes.

    Trump in four years will set the US back well over a decade. Remember it will take time to rebuild the great US government departments and institutions he has gutted.

    China’s rise is still immature in many ways and there is still time to remove Trump so the free world can tackle the Chinese.

    America can not succeed on its own and never was able to. This is one part of history ignored by many Americans. You need us or you have little.

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