US-China trade war: who has the upper hand?

The US-China trade war is set to escalate further on March 1, when tariffs on $200bn of Chinese goods jump from 10% to 25%. The FT examines the superpowers' relative strengths in politics, economics and the stock markets to determine who has the upper hand.

[Withnail]

China doesn't need to negotiate anything. People will still be buying Chinese goods even with tariffs on them. They're still far far cheaper. Here's some examples.. I kitted out my home with various Chinese brands of wifi smart colour light bulbs that work with Alexa. Price per bulb was around £13 on average. Philips Hue bulbs, that do the exact same thing but also require you to buy a hub for an extra £25, are £45 each. I needed a new phone, so I bought a Xiaomi Red Mi 5 Plus. Great phone, £150 new and unlocked. Apple phones as we know are over 6 times as expensive. China is obliterating western companies on value for money and Amazon is China's conduit to our markets. I'll never buy Western brands again at these price differentials.

[ramlee]

China is more unified including chinese living overseas. America is segregated.

[wanmo]

Our company are buying more China product compared to US recently. If the trending continues, would not have any US product onshelve

[charlyguerrero]

China will win and I'll tell you why:

1- What the Chinese do not sell in the United States, they can redirect it to its internal market that is gigantic (and with increasing purchasing power).

2 - A strong government like the Chinese can devalue its currency at will, without affecting its productive apparatus with what would make its products cheaper, and what does not sell in the United States, easily places it in another part of the world.

3- The United States is easily broken by the international production chain without Chinese parts or raw materials; On the other hand, China does not take care of the Americans to produce.

4- China is the largest holder of US debt bonds, financially they can sink North America and affect its consumers the day they decide.

[navyfielda]

One of Chinese institution had a survey in Korean while there was trade war between China and USA, and I am not exaggerating this, 99% of Korean supported USA.

[BakerStreetDet]

Country of Individuals vs. Country of Family

[bw]

People seem to forget how Trump got voted in in the first place. Thinking about lost US jobs. I’m sure those people won’t care about a stock market dip. They care about being able to work. It’s the same in the UK with Brexit. Do people like the FT and media never learn?

[Owleyes]

China has a long term strategy America has a two to four year plan. On the short term America will create jobs, but it will not be sustainable long term, just basic economics

[toddlavigne]

You can't just slap tariffs on China and expect manufacturing to come back to the US
Prices will just go up in the US with no other alternative products. Shouldn't an industry manufacturing X being established before taxing Chinese made X. At that point the products are the same price. But can the US ever produce anything
at the same price as China? Isn't it too late to revive the manufacturing base in the US ?

[kbboy]

Can you have an update now? The US has more than 25% of COVID cases and the highest unemployment. China has largely controlled it and back to business.

[johnzhang]

China has the largest consumer market in the world!thats all!

[jg]

Who has gold bars made from tungsten and copper? 😆

[charlyguerrero]

In these times Trump feels hurt because China is using the same methods that the United States used in its time. China has more reserves in dollars than the country that produces it (United States).

China is doing the same as the USA, and the USA, but unlike the United States does not manufacture yuan since the financial market still manages the dollar pattern.

What are the chinesse doing?

Taking advantage of the bad habit that the American acquired in his good times, live as if the money grew from the trees. China sells products and goods to the United States above the USA's payment capacity. China tells the US do not worry you have credit, China is the largest US credit bank. The US debt to China is 1/3 of China's monetary reserve. If China undo of this debt in very short term, the dollar bankrupt like supporting currency. It is what China wants to do, but it can not do it in one fell swoop because it would cause a global debacle, and would include China, but it does so little by little and replaces the debt with Yuan instead of dollars. It will cause international currencies to have two currencies, the dollar and the yuan. Hence, positions of power in the world are taken through: the great Chinese play.

The commercial war has bigger goals, in which Trump wants it or not, leads them to lose. He does not have how to buy his own debt for social and military spending. Everything seems to be that China does not want to sell the debt that I buy to use, China is not interested in dollars but world supremacy. Move to the Beijing Consensus

In this 21st century, talking about Donald Trump and the USA, it is said: "Following economic and commercial protectionism is like closing oneself in a dark room, it may avoid wind and rain, but light and air will be left out" (Xi Jinping president of the People's Republic of China).
The Yuang its in the IMF. And the IMF in some years is going to move to Beijing as stated by Alfredo Jalife, Mexican specialized in economics, geopolitics and globalization. Very Famous in Latin America and the whole world.
The United States produces almost nothing, it's more agriculture, Latinos take care of it, or do many jobs that you do not want to do. Your economy is based on services (as the former president of Mexico states: Carlos Salinas de Gortari, the famous rustbelt in the 60s represented 30% GNP, now represents 9% GDP since it has been converted into a service economy). China's economy is based on manufacturing, producing and exporting, that's why almost everything says Made In China around the world. The Americans are foolish because former. Mexican President Carlos Salinas with his Republican and Democratic friends in the US made the US Senate approve the NAFTA at began 1994, which is a surplus for Mexico and a deficit for the USA. YOU WILL LOSE THIS WAR LIKE VIETNAM, BUT THIS ONE IS COMMERCIAL AND YOU ARE CHALLENGING THE INDUSTRIAL POWER THAT PRODUCES THE MAJORITY OF PRODUCTS IN THE WORLD CHINA!
In the long run, the commercial war will be won by China, for something that Donald Trump has not taken into account with his tariff policy is protecting the US and not the rest of the planet from China and Dumping supply. Two systems of government The United States has Democratic Capitalism and China one-party communist system in the political and capitalist in the economic (mixed economy).

The US can not handle the dollar at will, it goes up or down depending on the global offer. The Yuan is also managed in supply and demand but when there is a crisis in which the Yuan loses its competition against the dollar, China can artificially devalue the Yuan, with which Chinese products are cheaper in the international market, and the Yuan is backed by gold. the dollar no. The United States can not use this mechanism with which it loses competition against China.

To end a Superpower like the United States should not have external debt, have more than 40 million poor and have COMMERCIAL DEFICIT WITH THE WHOLE WORLD IN CHINA. I have a degree in Foreign Trade and Customs, with a Diploma in Globalization from the United Nations Chair and a Mexican student from the Master's in Economics.

[glennghizzoni]

You didn't say anyting about manufacturing companies in China leaving because of the trade War

[高长恭-by]

Who cares? I can live without American product. But I can not live without product made in China.

[seanavp]

Trump's approval rating continues to grow....despite the msm hysteria!

[venkatanathen]

Long live Mr.president Trump. At least he says and does for his nation

[andrewparker]

China has the upper hand from the beginning. Chinese can survive with one meal a day. Americans will not survive with just one meal a day. Chinese work 7 days a week for pennies. Americans will not move a finger unless it’s a big salary.

[Riyan]

How long will they learn that pursuing economic power is just a mirage?These two countries try to be the biggest economic power in the world while tiny country like israel, which is not as rich as both, its lobby still takes over US policies. In Asia, anti-china views now raising across neighbour countries even in HK itself. While these both kids r fighting other countries bloom and take advantages from this. US should rebuild its unity first before declaring a war and china should stop its daydreaming of ruling over the world due to weaker political influence. The winner is not about who the richest is, the winner is who will get more inevitable influence across nations

[akashgupta-bwvo]

There is no replacement of chinese goods although i believe two super powers should not fight