Sven Longshanks and Dr Matthew Raphael Johnson discuss Trump’s trade war with China, what the real reasons for it are and what the outcome will be.
It is impossible to do business with independent companies in China, as they are all connected to the government. State Owned Enterprises are the most prominent players in all the key areas of the economy so if the West does business with them, it is a security risk. But the temptation to make cheap products for export there is high.
China is being accused of stealing US technology, but if the US wants cheap tech, then the Chinese firms need to be told about that technology and of course, then it is also known about by the government.
Trump has responded to this with tariffs, but these tariffs have done nothing but hurt the American companies doing business there. Since the Chinese companies are subsidised by the State, they have more resources to compete with than the companies of the West.
The tariffs are basically helping China to become self sufficient, whilst strangling the profits of the American companies that moved there.
Presented by Sven Longshanks and Matt Johnson
The Daily Nationalist: The Trade War With China – DN 052319
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