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by jdoliner 2839 days ago
> Anyhow, the point of this is that by imposing tariffs on American agriculture (thus reducing Chinese demand) you stand to force this system to respond very visible ways, such as for instance by increasing the number of farmers being paid not to farm or increasing the amount of harvest that can't be marketed.

The only thing the tariff forces is Chinese companies paying it. This might in turn incentivize them to not purchase American produce which would lead to the effects you're describing. But why incentivize a company to do something if you're running the company? Can't you just tell them to do whatever it is you want them to do directly? Or are they not, in that sense, running the company?

1 comments

We can only speculate but in this case I'd expect the order was part of a preexisting (or perhaps even prepaid) contract with the US supplier. Or perhaps this company had demands leaving them unable to cancel the contract even if it was possible. With a country of 1.4 billion and certainly the most expansive government in the history of our species, I wouldn't view the Chinese government as homogeneous. Even in our relatively tiny government one segment regularly engages in action much to the detriment or disagreement of another. In the longterm though I would expect this 'issue' to be 'fixed'.