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Notes -
US and China slash tariffs as trade war cools
It looks like we will experience a de-escalation of the tariff battle between the US and China.
How does this line up with your personal predictions for how this was going to proceed?
My belief was that both sides would maintain 100+% tariffs but exempt essentially everything that matters. This development shows that I was wrong and I don't understand something about the events that have occurred. Does anybody have any ideas on what I missed?
The tariff's hurt China too. For reasons I can only speculate, all I've ever heard about tariffs are that they are stupid when the US does it, and brilliant when other countries (especially China) do them to us to protect their industrial base. While there may be something to the specific circumstances that could support this narrative, it is rarely evident in the reporting. If you've ever been inoculated against Gell-Mann Amnesia, you'd detect a psyop going on here.
China has basically stopped even reporting financial figures, not even the fraudulent ones you need to read between the lines of. There is effectively no reliable information about how the tariff's are impacting China's economy. But rumors are coming out that it's manufacturing sector in panicking, with factories sitting idle and orders drying up. Even if reshoring is years away, companies literally cannot afford to order from China while the tariff's are in place. I was watching some of Gamer's Nexus's coverage of the tariffs, and companies were saying that with the tariff's they would lose $100+ selling a $100 PC case for example. So all they can do is shut down production and hope a solution presents itself. They haven't sold through their US stock (yet), but they sure as shit have cancelled their orders no matter what the penalty they have to pay.
I factored that in to my prediction when I made it. Do you think the situation over there is so dire that they can't even afford to try and save face?
They have state controlled media. They can always just lie. Also, they can just cheat on whatever deals they do make and brag about it. Maybe Trump won't even notice.
I donno man. Even before 2024 Trump, I've been seen weird "read between the lines" predictions that China's economy is secretly fucked. But I never know what to take seriously, because it's basically a choice between believing state run media, or cranks. One side says everything is amazing and they have 8% GDP growth, the other side says China is already in a recession.
Then again, they say the same thing about the US...
But I find it not impossible to believe that inside the black box that is the Chinese economy, the wheels already came off long ago and it's just barely holding together with chewing gum and rubber bands.
And the rubber bands were manufactured in China.
Unless China is absolutely fudging their population numbers to UNDERCOUNT their population drastically (which would be a galaxy-brained move) then they are absolutely fucked in the medium term. There is no way to counterbalance a population where there's a massive class of consumers (the old and decrepit) and not nearly enough producers (young-middle aged workers) to keep everyone at a reasonable standard of living.
Its baked in. The collapse will come, Wile-E-Coyote already ran off the cliff, but they may be able to keep him from looking down for a while with propaganda and manipulation, or manage the fall down better than expected.
Yes, there is. "Keep everyone at a reasonable standard of living" is not a requirement for what remains a Communist dictatorship.
But it is a requirement for ruling China. The communist party knows that its mandate comes from being able to "Keep everyone at a reasonable standard of living" ; in fact, the mandate for anyone ruling China, communist or not, is to fulfill that need.
If they can't guarentee reasonable standards of living, then revolution and uprisings are on the table.
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I don't know about "secretly fucked". But they are very dependent on exports, and the US is their second largest market (after the E.U.), so whether they were fucked before or not, the tariffs fuck them now.
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