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by jberm123 2271 days ago
If China becomes less dependent on exports to the US, they could dump US treasuries, which could potentially destroy the US economy & the dollar.

They have the US by the balls.

1 comments

Interesting theory. I suspect China will continue to do what they’ve been doing, and build out their own country.

The United States was built on the foundation of transportation (roads and highways), automobiles, mortgages, and travel. These industries built up the middle class, by providing jobs for home, and profits from exports to abroad. Then came tech and the massive windfall from that.

They essentially have the population of 4 United States, that they can essentially just compete internally among themselves, while still producing products for export to abroad.

They can just follow the same playbook here.

* Infrastructure, check, they have highways, airports, and also, high speed trains.

* Automobiles, check, they have the largest car market in the world. And they are continually working with, and learning from, their European partners. Eventually, they’ll get good enough to not need external partnerships.

* Mortgages, check, lots of high rises, since that’s the only way to house so many people.

* Travel, in progress, they’re working really hard to make a commercial airliner. This will take another 20 years, but Boeing messed up with their 737 Max fiasco, which may give them an opening sooner. But most of the parts to this airplane comes from American companies, so if Trump wants, then he can really crush their airplane independence dreams, at least for 10 years.

* Technology, in progress, they have mostly web companies, and application companies, but not yet core technology companies. They still don’t quite have CPU and memory chip companies yet, and they outsourced manufacturing to Taiwan. This is where Trump can really crush them, but again, at a heavy price, and only for 10 years.

In the end, anything is possible, but I highly doubt they are interested in squeezing the US by the balls anyways. They are finding it more profitable to maintain friendly terms with the US, and sell them cheaper trinkets, than taking a confrontational approach, and getting into a hot war, where nobody wins, except Lockheed.

OP assumed the rest of the world will become less dependent on foreign goods, which would therefore hurt China. I pointed out China is hedged to come out on top in that scenario, not that China would necessarily push for that scenario.