China refuses to back down in escalating U.S. trade war

The trade war between the U.S. and China has escalated with new tariffs imposed by both sides. CBSN contributor and Signal newsletter writer for GZERO Media, Willis Sparks, explains why China isn't backing down.

[Oldfogey]

You haven't been ripped off by the rest of the world. You have had a trade deficit for the last 30 years owing to progressive industrial decline because you haven't invested in your people, technology, etc. It isn't possible to start putting up factories and start producing $500 billion worth of goods overnight. The deficit isn't going to shrink to zero despite what Trump says.

[ThisCharminManc]

‘The farmers are doing real good’ was that before or after tax payers gave them $12 billion in aid?
This clown bankrupted 6 businesses!

[sleazemarko]

The Americans have not felt the pain right now, but wait and see till Christmas.

[kevinl]

they are laughing, what back down, Trump raised 10 % tariff and they also devalued RMB 10 % that's means 0 tariff, do the math

[xolvoer]

The farmers are doing well??? The old man really needs a doctor.

[spectrallim]

Hmmmm .... feeling like the Roman empire free bread and gladiatorial games. Are we going there now?

[melopc]

The farmers are doing well again, very mwahahaha

[Herodotus__]

China also is reducing tariffs to other Countries...lmfao

[precipice]

as if US treat the other countries fairly.

[maddievega]

Farmers are doing really bad; they were also affected by floods in the Carolinas. .lets be real.

[claireconover]

The farmers are doing so well, we’re subsidizing them to keep them afloat.

[cathyzhang]

The reason Chinese do not buy much from US is you do not sell much to China.

[xixinan]

Why back down, the tax is for Americans importers and consumers. It take at least 5 years to develop a stable supplier in another place.

[laurastui]

Yes, our farmers are doing very well because we consumers need to pay more for food and gas and housing. Shame on you.

[lokhima]

no one had the guts for the tariff war till TRUMPH came along, very much needed

[twenlil]

I did my own analysis and I came to the same conclusion on the impact of all the US tariffs on the Chinese economy... here's my take:

What is the impact on China's GDP if US imposed tariffs on ALL US imports from China ?

If US tariffs cause a contraction of 10% of their imports from China, the impact on China's GDP would be less than 0.5% !
If US tariffs cause a contraction of 20% of their imports from China, the impact on China's GDP would be less than 0.9% !

That's the reason why the Chinese government is planning to bring forward their infrastructure projects to mitigate the effects of the US tariffs.
I doubt the contraction can be more than 20% which is really an extreme worst case !

Do your Math ! Open a spreadsheet and plug in the numbers and see for yourself.


The Chinese government are already prepared for this further escalation.

"China goes back to old habits as government pumps up spending on infrastructure to boost economic growth"

"Is China’s New Infrastructure Spending Spree on Horizon?"

China to boost tax relief for exporters as more US tariffs loom

China to increase export tax rebates on 397 products

China has clearly telegraphed how their economy is changing, says pro

[yl]

Why do you want to make a deal with a lame duck president who only has two years left?

[JohnLee-skpy]

Well you wanted to see how bad it could get? Here we go Jan 1 you get your wish.😂

[neilz]

why is the title China refuses to back down? The U.S. Started it. It is almost similar to someone punching someone and the man returns the punch but the attacker is confused and offended that the other man punched back.

[谢谢-zl]

Past humiliation and oppression have built persistence in Chinese DNA. Thank God for the best character-building tool.