That would pose a serious problem for the American economy, whose bilateral trade with China stood at almost $600 billion last year.
China will become the world’s first trillion-dollar aviation market over the next two decades with a demand of some 6,810 new airplanes, according to Boeing. China switching to Europe’s Airbus to fulfill this demand would give the U.S. a daunting counterpunch.
The threat to halt soybean and maize imports are similarly intimidating, jeopardizing U.S. food exports to China that are expected to hit $21.5 billion in 2017.
And some 320,000 Chinese students accounted for 31.5 percent of international enrollments in the U.S. last year — a market worth $30.5 billion to the American economy — according to the Institute for International Education.
“If the U.S. levels punitive tariffs on Chinese goods then, in a worst-case scenario, China can retaliate by leveling similar tariff on U.S. goods,” explained Victor Gao, a Chinese international affairs expert who worked as a translator for late Chinese leader Deng Xiaoping. “That will create a vicious cycle and everyone will be a loser.”
Many American giants such as Apple, GM and Ford rely on China both for the manufacture of goods at low prices and as a huge consumer market.
Related: Trump Jobs Plan Could Boost These Industries, At A Price
The likely outcome of disrupting this symbiosis? Higher prices hitting the wallets of blue-collar Americans.
Trump’s campaign was built in part on a promise to return industrial jobs to areas such as the Rust Belt. But whatever economic penalties China might pay in a trade war, there would not likely be a direct benefit for the U.S., experts believe.
Apple might be compelled to move its export manufacturing base from the Chinese city of Shenzhen to another place such as Vietnam, while a shoe company like Nike could move to somewhere like Indonesia. Even if some vacancies did trickle back to the States, most would probably be filled by robots.
we will bring jobs back alright to a much smaller market while destroying the growing market we are selling big ticket items to now in China. We will put Boeing and GM out of business but hey, we will save some cheap Assembly jobs in Sheboygan.
Not a good idea Mr. Trump.
By the way, this just in…
China said it hopes to conclude an alternative Asia-wide trade pact as soon as possible. A Chinese foreign ministry spokesman said Asian leaders are moving forward with talks for the 10-nation Regional Comprehensive Economic Partnership. It includes many Asian-Pacific countries including China, India, Indonesia and South Korea, which are not part of the TPP. **The deal has been backed by China and is seen as a way for Beijing to expand its influence in the region amid the likely collapse of U.S.-backed TPP. **
…and we wonder why they are eating out lunch???
we are walking away…and China will take it all.
why would any American support such lunacy?