Signs China is not ready for a trade war

Trump called for a cease fire in the trade war with China, but the great wall of china is showing cracks.

What is the one thing the Chinese government fears more than anything?

Widespread civil unrest.

What can cause widespread civil unrest?

Economy slowing to a crawl.

https://www.thehindubusinessline.com...le26051807.ece

Quote:

President Xi Jinping stressed the need to maintain political stability in an unusual meeting of China’s top leaders — a fresh sign the ruling party is growing concerned about the social implications of the slowing economy.

China has positioned itself into a corner. It has to maintain free trade so its can exploit low wage workers, but on the other hand protects its economy by limiting imports.

Something China uncensored talked about recently is how China has massive construction projects in Africa. Rather than using local labor, China is relocating massive amounts of Chinese workers to Africa.

It appears to me China is worried about its economy. Not only are there serious worries about the Chinese economy slowing, the nation is developing Africa with Chinese labor.

On a side note, how many of those Chinese men will marry an African woman and will stay there rather than returning to China?

In short:

China has to protect its economy to prevent civil unrest.

Trump hopefully will push China to balance trade.

China will not balance trade to protect its economy.

Sooner or later something will have to give. China can not continue to steal intellectual property, while exploiting cheap labor. As labor costs rise, companies will look for cheap labor somewhere else.

When factories start moving to nations such as Africa, China will be left with few options.

Let's block ads! (Why?)

Signs China is not ready for a trade war