Understanding China


#581

It’s obvious that the US cannot continue to buy $550 billion a year of Chinese goods every year while China only buys $134 billion of US goods. The US cannot keep printing money forever to send to China.

I have a modest proposal to balance US / China trade. Don’t focus on tariffs, just require all Chinese made goods to clear customs into the US in Guam, Hawaii, and Alaska. Thereafter, those goods can be delivered to other US destinations by Jones Act ships. Given the current size of the Jones Act fleet, and limited port capacity in Guam, Alaska, and Hawaii, this would quickly bring US / China trade into balance at about $100 billion ( just a guess) each per year.

China produces very little that America needs that cannot be obtained somewhere else at similar cost with a few months of planning.


#582

Its the rest of the trade deals that china is stamping their feet an sulking, all the details about stealing trade secrets, 51% chinese ownership of all companies etc etc
Thats why they cant settle and follow the EU lead


#583

Yes they can, as long as China keep on buying US Treasury Bonds and investing in US companies. If the trade dries up, so does the incentive for the Chinese to do so.

PS> Quite a lot of Chinese export to the US is products made from imported parts (some from USA) and by Chinese subsidiaries, or by Contractors on behalf US companies.

There is also the matter of US surplus in services with China:

Of course FACTS does get in the way of a good grouch.

The same applies the other way; US produce VERY LITTLE that cannot be obtained somewhere else, by China or anybody else. (Hollywood block busters, silly sitcoms and dumbed down social media is not life necessities)


#584

Which would further allow the snake to wrap around us…no thank you.

Ok…so the number is $336B instead of $500B…both numbers are ridiculous and the situation is in need of immediate corrective actions. Actually, corrective actions are some 30 years overdue, but FINALLY we’ve got somebody that is trying to address this situation. Unlike in China, our president is subject to term limits and also does not possess unlimited ability to act unilaterally (aka, we don’t have a communist dictatorship here) so the real question is will he get the help he needs this fall and in 2020 to see this through? We’ll see.


#585

Be careful what you wish for. It is China, not the US, that decides how the yuan and dollar interact. They are very good at playing the game:

Are you suggesting that China should sell less to USA, or buy more from US?
If the first then the US consumer would need to pay more for US made goods. If you just switched to buy from other low-cost manufacturers you would just move the deficit, not reduce it.

China have no problem buying more US commodities, such as soybeans, crude oil, LNG etc. as long as it is on fair terms and competitive prices, but to buy more US made manufactured goods at excessive cost is not a likely solution.

If USA wants to have parity in trade with the rest of the world you have to offer something that consumers around the world want at competitive prices.
(I.e. Cars would have to meet rules and safety standards of the receiving countries, just like foreign cars have to meet US requirements etc.)


#586

Chinese love their i phones, I dont think they could do without them…
I wonder if its the phone or the fact they gov cant spy on them like all the Chinese phones?


#587

How do you know that the IPhone is “safe”?
They are made in China. Maybe the Chinese have managed to slip in a little bug??

Or is it the Americans that have forced Apple to incorporate such feature in the design?
No, probably not. They are “listening” to all communication, regardless of who you are, or what means of communication you use. (Incl. this post)


#588

They did. They forgot to add the headphone port.


#589

Meanwhile the Great and Ancient continue to expand year on year…

https://www.hellenicshippingnews.com/cnco-expands-north-america-presence-with-new-office-in-vancouver/


#590

Swire is a British Conglomerate


#591

But they understand China like no other. They get to see the Chinese leadership before any politicians and see tha way forward. Their routes to Canada and W Coast USA feed into their Pacific Island hubs and China / Asia / and to Hawaii / Guam / American Samoa.


#592

Is that a statement or a question??
Yes Swire is British by origin, but with a LOOOONG history in China and the Pacific.

BTW; The name of the company in Cantonese is Taikoo, which means “Great and Ancient”.

For those without knowledge of Swire, here is a short video that give the basic:
http://www.swire.com/en/global/video.php?file=https%3A%2F%2Fview.vzaar.com%2F6181023%2Fvideo


#593

China continues to spread influence


#594

Crossing the straits like I do lots from Singapore to Batam power and sail, the volume of ships is 50% of what it was 10 years ago, so I dont think the world has expanded back to pre 2008 crash levels, maybe they just go 100% bigger so wiped out 50% of them?
You can pick a slot and sail on same tack straight across these days, gone are 5 ships abreast at different speed going each way in the old says, that made it a real sport.


#595

No wonder China is getting rich. They just print money:


#596

people still make paper currency and not plastic, thats a bit old fashioned and expensive in the long run


#597

[quote=“powerabout, post:594, topic:45005”]

I don’t have figures for 2018 but 2017 was an all time high with over 84000 thru Malacca Straits.


#598

Being out there i just cant believe it, who collates those figures?
Is that passing singapore, how about on East side?
If you ask anyone crossing in pleasure craft today they all say the same thing, crossing the straights theses days is no issue at all due to low traffic.

I will have to sit and watch the AIS and take a random sample but with 84,000/year
say 42000 each way / 8760hrs
4.8/hr
its not busy
I think they didnt count in the past, what are the chances of waves of 5 abreast like years ago going each way?


#599

Counting shipping activity by how difficult it is to cross from Changi to Nongsa by ferry, or sailboat may not be the most scientific.
Actual statistics give an entirely different picture:

The traffic of VLCCs has doubled in the last decade:

Singapore Port is also busier than ever, with abt. 1000 ships within port limits at any given time and an arrival or departure every 2-3 min.:
https://www.mpa.gov.sg/web/portal/home/maritime-singapore/introduction-to-maritime-singapore/facts-and-trivia


#600

Alibaba is forging ahead to introduce it’s cloud technology outside China and overtake the American giants in the process: