Biden's New China Tariffs Explained
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- čas přidán 7. 06. 2024
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Biden recently announced a series of high tariffs on Chinese products. With the CCP threatening to respond, in this video, we take a look at what drives the trade war, why Biden changed his mind, and how this could all end.
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1 - / 1138506137697959939
2 - / 1157326440905371648
3 - / 1790479251843522959
4 - www.bloomberg.com/news/articl...
5 - / 1138506137697959939
6 - / 1157326440905371648
7 - www.tcd.ie/Economics/assets/p...
8 - www.macrotrends.net/global-me...
9 - www.weforum.org/agenda/2016/0...
00:00 - Introduction
01:03 - Tariffs Explained
03:30 - Why Biden is Doing Them
04:54 - How Does This End?
07:51 - Sponsored Content
CORRECTION: As a helpful commenter has pointed out, Frederic Bastiat's "Fallacies of Protection" was actually first published in 1845, not 1909, as we claim in the video, which is the date it was first published in English by Cassell and Company Ltd. Apologies, and we hope you nonetheless enjoyed the video!
So your analysis what completely wrong and baseless? The theory that economic dependency leads to peace and economic independency leads to war is just theory and not ironclad. Economic gains and losses are just are one of many factors that countries assess before choosing to going to war.
Love your work, but please don’t present free market advocacy theories as fact.
Please change the video accordingly. This point can massively change the perspective of the takeaway from the video. Your last argument loses a lot of meaning and leads to misinformation of the viewer (especially as most don't check the comment section).
@@bigbear5844 I don't think they ever claim it is ironclad, and the date the book was published doesn't have any bearing on how accurate the theory is.
“trade dependencies are a great safeguard against war”. that’s nonsense. China hasn’t attacked Taiwan because it’s ready.
wow~ China makes things so cheap. But usa medical care is extremely expensive. Now their raising tariffs? How is the usa treating its people??
I'm old enough to remember when Biden said Trump was stupid for implementing these same tariffs.
I dont care ,
At this point, when it comes to most of the foreign issues (China and Israel/Palestine) and even some of the domestic (energy) ones, Biden and Trump are basically the same. But Trump is a lot more upfront about his intentions.
2 months ago.
Trump was stupid with his tariffs. He didn’t strategize with allies or have an end goal to restore industries/supply chains, so taxpayers had to pay for massive agricultural subsidies when China struck back at us. Billions of dollars wasted, and no jobs were restored. 2024 is a different landscape, and Biden sees opportunity while China is overplaying its hand with subsidies.
Some were stupid. And some where not. He carried on the ones that were not. Nice to have a President who is actually working and not a sexual predator and criminal who just plays golf
I like how the concerns of European great powers were portrayed by Minecraft items
I believe it is in homage to Minecraft turning 15 years old.
I would also be concerned if the UK wouldnt trade me Bonemeal anymore!
That is what I was going to say but yeah 7:27 is where is shows it off
Frederic Bastiat died in 1850. Fallacies of Protection was published in 1845.
I don't like how CZcams forced everyone to the app and blocks copying text for external references.
Bastiat failed to foresaw immoral and self-interested despots like Putin
@@Charity4Orphans Why do you have to go to the app?
@@tjn7608 They mess with your mobile version on cheap phones from the browser.
I give everything I get to orphans in Kenya, through the charity my family has started.
I have a Nord from T-Mobile, it was free when they did the 5G promotion.
Then I have a military discount so it's around the same price as Mint Mobile and I have phone service.
How rich and wasteful are you?
I come from the deposed Democratic Conservatives and I left the Republican Party because they are not conservatives like AOC.
It could be great if China exports to the US via Mexico. Using Mexico as a third party means additional cost which is revenue for Mexico and can be monitored and controlled. It means that US citizens can still buy the products but at prices which don’t damage US local industry.
They are building factories there as well as a lot of infrastructure like HSR. Meanwhile just annouced selling the new BYD truck in Mexico 🇲🇽. Your comment may be a reality soon.
@@ZachLDB meanwhile Canada farts in the wind, falling ever further behind our neighbors
How about making affordable cars so we don't have to play these games to save the local industry.
@@The_FunguseaterCanada is not remotely similar to Mexico
@@marcusj9947the local industry that keeps people employed and contributes to the economy?
According to a previous version of joe biden' the only person who pays for tariffs are the consumer' he must've forgotten.
Thats why Joe Biden will lose the election. The most recent polls shows Biden lacks behind Trump by more than 10 percent and most of the disapproval of his admin is high inflation on food etc. Biden's protection policy drive up US consumer prices and it costs his presidency (right now his approval rating before election is the lowest in the US history ). What goes around comes around...
Well then China has massive tariffs on EU and US goods I guess you need to remove them.
There's an election coming up, so he's gotta demonstrate that he's protecting american industry with something concrete. Politics means a lot of going back on promises and a lot of compromising.
@@kylejohnson6775 Look Kyle, I'm sorry but you been duped. Yes, President Biden is protecting some industries but right now buddy despite the tariffs put on by Donald Trump and Joe Biden we are doing record amounts of trade with China.
@@kylejohnson6775 You don't have to believe me, look up on Google or better yet read a good economic report it their in black and white we have increased trade with China, not decreased. In fact, right now Mexico not China is are biggest trading partner. The Mexican economy now is bigger than all of the Eastern Europe combined.
Well... trade dependancy isn't stop Russia from invading Ukraine, in fact, they bet 'weak-will' US and EU wouldn't dare move a finger to counter because they would lose money. They are wrong.
The main issue is, Russian imports from the West could be replaced by other countries, mostly notably China.
@@ultracapitalistutopia3550 Same can be said for China & US, if push come to shove they can do it with vary degree of damage to their economy.
Main point is trade dependancy is two way process and one party can certainly break it if they really want to.
Russia was expecting a quick victory
@@ultracapitalistutopia3550 India can easily fill the void that would be left by China.
@@aze94 Yeah and now they've doubled down hoping that NATO would lose interest
China should drastically reduce its imports of Boeing aircraft, using safety as a justification. Just focus on its COMAC and the Airbus planes.
That literally wouldn’t do anything
The trouble with that is that China has all these (soon to be useless Dollars) & they have to buy some other than gold.
I think it's fair. The US reserves the right to counter tariff. Given the imbalance of trade between US and China, China will run out of ammo first.
"They cheated, they are supporting their businesses with subsidies!"
Green New Deal & the Chips Act be like👀.
they're cheating by *checks notes* investing in their own infrastructure. those evil chinese, ooooooh damn them
Green New Deal was never passed. Chips act is 280 billion over ten years, targeting a specific industry(the majority of actual cash investments will be from private companies, which so far, far eclipse the 280 billion the government provides). That's pretty much chump change for how extensive and deep China's subsidies are.
Or 170 billion to Ford ,GM and Crysler in 2008-2010 ..FOrd was losing 30 billion every year
The US being the most protectionist economy in the world makes the news quite ironic.
What we are witnessing have nothing to do with "fair competition" and everything to do with two empires going to war against each other.
*gets rid of subsidizes*
*gas quintuplets in price over night*
Russian gas and Europe.
How did that work out
This.
Energy skyrocketed, they also destroyed the Germans factories m, but US exports of energy to the EU also grew a lot, but they did this exactly to do that
Europe survived and Russia... also survived, but Russia is now selling gas for dirt cheap and not getting enough return on investment.
@@wizzzer1337 And have had to sink more money into their war, which means growing their gas industry is gonna more and more difficult which will hurt in the long run. They are already extracting pretty much all of the easy to reach gas and oil the rest are locked up in Siberia which is not easy to extract from especially if the government isn't investing into it early when they have the money.
To be honest, Ukraine was not a member of the EU. Putin underestimated the reaction of the EU. He didn't think that the EU would view attacking Ukraine as attacking the EU.
I would disagree about trade dependencies decreasing the risks. If you are on the importing side (as US is), you are putting yourself at higher risk so exporter (in this case - China) may be even more inclined to start a conflict, as they would be less hurt, the way we've seen with Germany and Russia
Unlike with natural gas, china's cheap plastic toy exports won't harm the US if they get cut off. While china will be harmed without US money.
If the US wants the US Dollar to be a global currency, then the US trade balance must be deficit.
@@stefanomaurino8201 no it doesn't. The dollar was highly valued even when the US was a net exporter
@@SelfProclaimedEmperorThe US dollar was prized when it was an exporter because it still had gold convertibility with the US owning 3/4 of the world’s gold reserves
@andrewknight1272 the US dollar was still the reserve currency after the gold standard and before the US started importing so much.
Loving the minecraft icons 😂
War on money
War on cheap terror
War on cheap terror
War on Expensivism
If Trump wins then taiwan attacked
Free market baby
I mean year a free market between countries makes sense... inside a nation it often just leads to monopolies so you need distortions of the free market to putatively prevent monopolies forming. additionally workers rights are a distortion of the free market, the notion that people won't work under terrible conditions if it means putting food on the table has been proven false over and over again.
They work terrible at entertainment industry
Entertainment industries need no shut down because of radical corruption under connection of Trump's blood
Gaming has no place to our society
Movie Filming has no place to our society go f CZcams for censoring my important speech
Full blown of conflict what?
Socialical conflict over free free Palestinian rest in p!$$ world
No no no he will put his army to end the world using woke power under iran's regime
How will US citizens be able to afford domestically made goods when wages have been frozen for decades?
Thats the neat thing, they dont
They don't care about that
Tariff is to protect domestic companies, the oligarch that donated to Biden’s campaign fund. Consumer doesn’t matter.
Imagine if the West cared?
They're Americans, the processing power of their brain doesn't even think about it Just kidding.But seriously, the Americans really do not think about the consequences of their actions, which is why they find that the majority of the world is against them. Just look at the United Nations General Assembly.
Trade interdependency is just as likely to provoke conflict as to prevent it, looking at history. The idea that trade correlates with peace is a theoretical exercise pushed by lobbyists and not backed up by data
if the Whit-es want war, nothing will stop them from getting their desired wars
I remember a time long ago when Democrats were angry at the first president to issue in tariffs in China...we'll it wasn't that long ago in 2019!
For everyone saying protectionism doesn't work. In the future you will have books on how globalism didn't work. Some sectors can never go back to rich countries (unless automation takes force). But other products like a near 2000 dollar iPhone? Yeah those are expensive enough to manufacture onshore. I remember also a time when people said we could manufacture phones in the west because they would become expensive...well here we are with the 2000 dollar iPhones. So that argument died...😂
7:15 Map shows Germany without Alsace Lorraine in France, or Northern Schleswig in Denmark, or Eupen-Malmedy in Belgium
And where is Preussen. Lost and Gone. Give Germany Preussen Back.
@@willeisinga2089 no.
The small historical context in the end, was good stuff.
Codependency certainly seemed to deter Russia.
Because ukra1ne joinging nato was a big deal for russ1a, they had to do it.
Like if US officially recognizes ta1wan 1ndependence, Ch1na wll do whatever they can, codependency will not deter them
@@CleanDataCube-qo8dvTaiwan is the legitimate Chinese government.
It's people have been robed by she'be'bich!
From attacking the EU? Yes. From attacking a non-EU member? No.
Security concerns always trump economic concerns. See WW1.
@@baiwuli6781 China, is also propping up aspects of Russian society through the US.
We threw out US manufacturing technology to China.
Now through China, that US manufacturing technology is being tested and established to murder Ukrainian civilians.
Throwing through policy that can disable what the US threw out through mismanagement of corporate management needs to happen immediately!
He wants us to own EVs, he just doesn’t want us to own the Chinese EVs. I wonder why? Maybe because our auto makers would bankrupt, although they are heading in that direction already. Dealers lots are full of band new 2022/23/24 vehicles. Same with RV dealers, their lots are full and nothing’s moving. This isn’t good.
American made EV's are better
😂@@l2qz711
@@l2qz711 Don't you think that's for the consumers to decide?
@@l2qz711crap cars for a premium price...keeping my ice
@@ireminmon absolutely! I didn’t mean “cheap” I meant inexpensive, I better edit my comment.
How is china subsiding unethical but a company like Tesla which was built on huge subsidies is totally fine😂
US commerce department brings heavy tariffs against Chinese solar panels - Guardian, 2012
So didn't work last time when obama did the same.
Jealousy 😂, that's the real reason
And also Biden is down in the polls. He’s doing this as a political move before the election
You're being sarcastic right?
Compare the GDP per capita of China with that in developed western countries and your comment seems ludicrous.
And there are obviously many other reasons why one would not want to live in China regardless of how many pretty skyscrapers it puts up.
The right to vote and to read whatever media one wants and the right to criticize one's own government come to mind.
Why would you quote peaceful trade theory as if its a fact, when it is possibly one of the most heavily critiqued theory in political science? A lot of wars begin due to trade reliance on the nation they are going to war with (Middle east oil wars anyone?). You quote the Post Napoleonic peace theory as if it it wasn't completely discredited. There were so many major colonial conflicts in that period, the only wars that didn't happen were in Europe and thats because they were busy being colonisers and defending their gains. Its quite damaging to your reputation as a news org if you are just going to quote majorly challenged theories as if they are fact. Don't you make claims of neutrality?
Quick correction at 7:15. Germany at this time was in control of Alsace-Lorraine, and had greater control of Schleswig-Holstein and parts of east Belgium. Small mistake but still important for historical accuracy.
The end of this Video was the most thought provoking thing I have seen in a long while in terms of world politics. (and I do not mean the sponsor part lol)
Oh no, this means the dictator is going to take the pandas back ☠️
The ignorant creature is barking its silly nonsense how shameful n despicable
"... well paid manufacturing back to the US..." and that right there is why it won't work, well paid in China vs well paid in USA is a big difference. majority cannot and dont wanna pay 10X for stuff.
We still need to keep at least some manufacturing in America while also diversifying away from China.
You're making a false dichotomy fallacy. What about countries like Mexico?
Mexico is literally next to the USA.
Another country that could take production from China is India.
@@johnburn8031 Mexico has no where near the manufacturing capacity of China, neither does any other country for that matter
@@johnburn8031India is a capitalist ‘free’ market economy. You see more products from the much smaller socialist Vietnam than you do from India. Socialism is better for workers and therefore better for manufacturing.
@@tempejkl But muh corporate profits
cool video
From an apex predator to defensive tariff protectionism, what is change in the wind.
omg, love the minecraft symbols for resources
If China was subsidising EVs why can’t the US also subsidise EVs?
The US of A has been subsidizing EVs pretty heavily since 2008.
Because the world order after ww2 and especially after Soviet collapse was set to have weak governments so that we dont repeat the millions of deaths Communism and Fascism brought. Freedom of individuals and individual business on market proved great for avoiding catastrophes.
Under the IRA, the US has subsidized Tesla and other auto makers much more than what China did and yet they are losing so this is free market baby. Only free if the West wins
The US is doing that for several years. Even EU complained to US for this unfair subsidy. But US is always 'Do as I say not as I do'
They DO .. HEAVILY, but even subsidizing it, Chinese are more efficient.
This is a perfectly made video. Very easy to follow and the graphics are ridiculously well done. Impressive!
The economic linkage as a mitigator to war has been disproven repeatedly in the 20th & 21st centuries. Conflict is coming, economic alignment to strategic partners is good planning for security reality.
There are exceptions, but that does not disprove the rule.
@@Ramschatww1 happened even with trade depencies
@@millevenon5853 Like the video stated, trade dependencies had actually declined sharply in the years preceding WWI. Protectionism was popular in that time.
As you said this is prisoner dilemma, so what is the solution?
Tit for tat. In repeated iterations of the prisoner’s dilemma, each player can punish defection by defecting in turn, forcing the other player to either cooperate or lose out in the long run.
Diversifying productions to other countries with cheap labor like those in south east asia or India of course this is a long term plan with a lot of investment so for the short term one they could only bite the bullet i guess
"Trade makes war less likely" British and German empires would disagree
Reshoring manufacturing to America is a costly proposition to Americans and a stop gap at best.
American labor is too expensive. Without external influences, companies will always choose to manufacture where costs of manufacturing is the lowest. Which means reshoring manufacturing to America will always require tariff or subsidies. Which means costs will be passed to the consumer or paid for by the tax payer. The moment the subsidies are removed, the companies will move the manufacturing to a cheaper country LIKE THEY ALWAYS DO.
I will happily give up American manufacturing to a country like Mexico where labor is $1.05 per hour If it means I can buy a TV for $30 instead of $300.
Everything is costly. You think it was easy to build everything in China when all they had was dirt? Block China, and suddenly Vietnam is so easy to build factories. But ooh, no, impossible in the USA. Get over it. It can be done, anywhere.
@@TheBooban So what is the end game? Slap tariffs on Vietnam or any other county that is more competitive than the USA? Or keep subsidizing American manufacturing forever? American labor is EXPENSIVE and uncompetitive, even if everything was fair.
@@beo456 you do the same to them as they did to you. Block everything except what you want and do joint ventures. Some countries you can have more fair trade because economies are similar. American labor is only expensive as compared to poor countries. You want to live like Indians? Don’t compare countries. Big mistake.
not just labour, east asian as a region are much more competitive, the entire supply chain is within few days of shipping, and a vast market as well. Reshoring requires much more than just a few industries, it might be worth a while to product EV in America, but will never make an economical sense to produce screws and nails in north America.
@@WXRBL666 1000% tariff on screws and nails.
When the US doesn't tax it's citizens enough already:
It's an indirect tax. It's a "shove" to make US alternatives seem better value. Good policy in my opinion, much better than Trump who wanted to put these tariffs on, but didn't want to invest in manufacturing them???
America - Champion of free trade, master of protectionism. And Americans wonder why the world calls them hypocrites.
Free trade , not with China ,
Don't listen to what these politicians are saying - listen to the actions they've taken in the past.
0:37 - If you read the title or listen to the report and then look at that clip showed there . . What was they actually saying to each other?
What ice cream flavour is he inhaling?
Free trade means I can spend my money how I want not on how the government wants.
Free trade means destroying jobs and industry. No one supports free trade anymore dude. Republicans and Democrats both hate it
Jake’s videos are the best… He is the most charismatic host from TLDR
3:36 If the majority of Americans were really anti-China AND supported US manufacturing then there wouldn't be a need for the tariffs. People say they like domestic manufacturing, but then go out and buy the cheaper import products. Still it'll probably work politically, as the voters will rationalise their purchasing decisions as "I would if I could" and blindly ignore the reality of how the tariffs will impact them.
Capitalism sadly thrives best with amoral sociopathy.
"but then go out and buy the cheaper import products." - Why should I boycott and hurt myself by not having a cheap item? It has to be a law. Literally can't buy anything not from China. Blaming buyers is really lame.
Thats capitalism, nothing you can do about it. People don't have money to dispose for that.
Companies decide where to have their plants and source their raw materials. If the location of both is in an area that is less expensive than another, then they'll do it regardless, especially if it is an item that their consumer decides is 'essential' in whole or in parts overtime.
@@TheBooban Thank you for re-enforcing my point.
Also I should add this is not a uniquely US issue. Many countries are in the same situation with local manufacturing being undercut by cheap imports.
China’s present course regarding Taiwan makes war almost inevitable, trade or no trade. Proactively reducing dependence on China is the wise course of action. Any Chinese made or sourced goods entering via Mexico are covered under NAFTA rules of origin, hence tarriffs can still be applied.
i mean, we could just treat Taiwan as if it were not a colony of the US empire, yea?
As an overseas born Chinese, I find your narrative concerning taiwan very hypocritical and dumb if you think the Chinese is going to war against their own. We all know this concerns TSMC and the chip technology that is owned by Taiwan but currently controlled by US. Thievery is what we think of US actions. When you stop competing, then you should be aware you have already lost. Hence the tariffs, trade war and thievery which you so proudly support. 👍🏻
It's hilarious that the 100% EV tariff is still not enough to make US EVs competitively priced.
BYD just has way too big of a headstart on actually making an economical car.
Probably cuz they pay their workers 5¢ a day
Byd and those damn affordable prices on cars.
trade war is the same like actual war, common people hurt the most. literally the american leaders are saying to their people : "Don't buy cheap stuffs, buy the expensive stuffs"
"Anxieties" are mainly results of fear mongering and irrational behaviours
"trade dependencies are a great safeguard against war" yyyyyeeeaa tell that to Germany post-2022. Trade dependencies work with other like-minded nations, it doesn't work with ideologically driven dictatorships.
Inflation Reduction Act did EXACTLY the same thing:
Dump money in American "Strategic" Industries. HYPOCRITES 😂
And china has placed HUGE tariffis and straight up bans on US companies for decades. Difference is China depends on exports while the U.S. is a consuming based economy
Dont forget the green new deal and the chips act too!
What are you talking about China totally subsidizes all of their industries. If they where to stop that their economy would collapse. In fact, their housing market is collapsing as we speak because there isn't a government intervention.
chill pinky... china has a short list of industries where they accept supervised outside competition , US has a short list of industries where they supervise outside competition, it's ying-yang situation really .
@@agmuntianu Your "false equivalence argument" doesn't work when China actively blocks other nations from selling into their markets.
If it wasn’t for the fact Biden is 100 years old, I’d say he needs to grow up and learn trade policies
Biden is a grifter. He knows nothing about economics and businesses.
The idea that ww1 had something to do with economy is a huge mistification.
This whole video is a bunch of baloney tbh; the economy will always play second fiddle in the face of expansionist ideals like China's.
Trade did not prevent Ukraine in fact it is what gave Russia the confidence to act. Governments do not always act in the best interest of their country or people. China in particular does a great deal that harms them internally and externally. Trusting authoritarians is not a good idea especially considering the existence of Taiwan
It's so funny that we are yet to grasp ideas that existed since 1800s.
EV is selling so well in America that Tesla is firing more employees.
LOL! Yup!😂
Why there is no video about the new form futch government?
Great video, well done! Hopefully, clearer minds will prevail, and we will move towards de-escalation.
Why do you say "CCP" when referring to China but say US/America when referring to the US/America? By your logic you should be saying "the Democrats" when referring to the US/America.
When was the last time the CCP lost the Chinese “election”
Because the CCP controls basically everything in China, whereas power is shared between Republicans and Democrats in the US
Lil bro the ccp represents china while america is split by 2 parties dont get it twisted
The CCP controls all aspects of (mainland) Chinese politics meanwhile the US had almost always been split between 2 parties with the Dems currently controlling the executive and the senate and GoP narrowly controlling the house.
@@ExplosiveLandminewhy can't he call it China. Much more simple kiddo
You forgot the safety issue with tofu dreck products that catch on fire at high rates which is not desirable.
Almost all of your electronics are tofu dreck as you put it. Your iPhone is produced where? In China...Your camera? In China.... Your EV battery for companies like Tesla? In China...Your medical equipment, like syringes, face masks, gloves, and dental equipment? In China... The cargo ships that bring you said tofu dreck? Mostly in China. Every country in the world is capable of producing top-quality merchandise. And China produces some top-quality products and some wasteful failures. If you think all American companies produce top-quality goods, then you are not very knowledgeable. The very keyboard I am using to write this comment is sold by Corsair and produced in China. I replaced my old no-name keyboard with. My old keyboard was from a low-cost Chinese manufacturer. The only reason I replaced it was because of the leather arm rest. After 4 years of non-stop abuse, the top layer started to roll up. I hated the look, so I replaced it.
Desperation
So the prices on all itsms are going to be higher. 🤔
Has these tarrifs ever work?
Could those thousands of unsold Chinese EVs parked at European ports as well as thousands more parked in china have anything to do with it
Matter of time before they fall apart or combust😂😂
EU is broke and dont have money ,EU sales off cars is 10 milion compare to Chines 30 milion.And most sold cars in europe are the chepest ones with engines with 3 cyl ,like Dacia ,OPel corsa,Renault Clio etc
the american auto market has become colluded in oligarchy. auto prices are ridiculously and artificially high. joe biden and janet yellen might be afraid of an affordable auto which might force auto prices to become reasonable.
Enjoy the bovine manure fed to you by your corrupt leaders fake news propaganda
I fear that ultimately a way of thinking of politics and trade as a 'zero sum game - with winners and losers' is a hard thing to get out of peoples heads. The scale is just too big for our brains to actually properly imagine so our instincts pull us back to smaller scale patterns we think we can understand and control. To all of our detriment 😕I hope through travel and culture and highlighting the successes of cooperation we can keep reminding ourselves (and more importantly our children) that we're more than the sum of us if we manage to not kill each other out of fear and panic 😓
Big fan of the history lesson
Neoliberals w/Bastiat on tariffs: :)
Neolibs w/Bastiat on the broken window fallacy: >:(
The 1% won't pay for it
Seems a bit mad to mention security from free trade without pointing out that was exactly Europe's strategy behind increasing economic interdependence with Russia.
Tbh they should’ve done it much earlier due to unfair trade practices. Forced technology transfer is a non starter.
Remind me how the economic entanglement with russia prevented them from going to war.
That was the entire theory behind all the trade given to russia and china in the post cold war order was to prevent both from becoming aggresive and become normal powers.
The problem is that economic theory does not work for autocracies where historical griavences and nationalism is higher priority then profit motive.
This thought process was also proven wrong in dealing with Iran, syria, and north korea.
Global trade reduction is more a leading indicator/symptom than a cause.
You can cool it with the autocracy bit, all trade between states is unequal. Comparative advantage in the modern world mainly comes about by difference in wages. The global hierarchy of nations determines who makes what and who gets paid well and who doesn’t. Any state wishing to raise it’s position from lower to higher is going to cause problems, but it is their imperative if they are not completely corrupted by foreign money. States on the bottom try to improve and states at the top try to keep them down. China’s rise has been so fast that it’s disrupting the entire system of power established by the US. It’s the same ape politics people have been doing for thousands of years.
It was really stupid of Europe to give Putin hundreds of billions of dollar to build up his military so he could invade Ukraine
Nationalism? China doesn’t want profit motive because they’re socialist and want to improve lives, not because they’re nationalist.
@jacobjones630 and thanks to Xi, China's economy is crashing. The one child policy set the country up for the ultimate fall.
Putin really believed he could win within a few weeks, causing only minor disruption to trade and economy.
When one side believes they can win a quick and easy war, trade ties won't stop them. But it can prevent big wars when the military intelligence tells an aggressor that it would require a long war.
The accepted view that trade between countries reduces conflict is very much under challenge. Russia's exports of oil and gas to Europe didn't stop them from invading Ukraine and China's international trade is not stopping them from bullying neighbouring countries in the South China Sea
Trade between EU and RU didn't stop Russia invasion of Ukraine is because Ukrane is not EU, and actually Ukraine has never worked in EU's interest. Do you remember when Russia send EU cheap gas and who took the biggest middle fee? Ukrain. and when the Norstream was built which counties protested most? Ukrain and US? Do you think Ukrain is acting in the interest of EU back then?
7:14
Elsaß-Lothringen is in the wrong country.
' the long peace ' if we ignore the franco prussian war. The austro prussian war etc
Although there were some minor wars, there weren’t any major European or global wars. Closest was the Crimean War which only involved a few countries.
Neat
This wont increase the cost of living in US at all
So the us and china subsidised the production of products to get a leg up over their competition in the global market and now America put tariffs on Chinese products they import to offset the subsidies on those products. How odd. He could have done the economic equivalent of "you're too poor to compete with me" and subsidized the American products even more. Screw tarrifs, let the prices drop and see who can sustain this unsustainable practice longer while the customers enjoy a much needed economic break.
Not really, China has massive state run enterprises. Also the have 200% tariffs on most goods or straight out block industries like the American movie industry from showing their films. So they getting a taste of their own medicine for a change.
@@HellBot-gi5siYup.
@@HellBot-gi5si Explain to me how they are getting a taste of their own medicine.
The Chinese market is importing mostly raw materials to process into goods they sell elsewhere, the goods they import they put tarrifs on I'll acknowledge that but the amount the import is a fraction of what we import in terms of goods.
We don't sell them stuff produced here in any quantity comparable to the stuff we buy from them.
We are the market, we are the customers, we are the ones with money not them.
All businesses that want to sell to the Chinese market go there and build the goods to be sold there.
Them making goods at a loss and us buying them for cheap hurts their budget not ours. The government putting tarrifs on it just takes away the cheap goods and doesn't give us anything in return.
But maybe I'm wrong, maybe the higher prices for Chinese goods will incentivise customers to buy locally produced goods and it will be a massive boon for our economy. I guess we'll just need to wait and see what will happen.
@@basbekjenl China does not allow imports of manufactured goods from other countries like India, Russia, Iran unless it weapons they can copy.
@@basbekjenl There super high tariffs and there no competition even within China. Many are state owned industries. So there isn't competition even from other Chinese companies. But at this point China economy is already breaking down. Because it does not innovate it only copies. It needs access to the west and it technology to copy otherwise will end up looking like Cuba.
Won’t someone think about the poor CCP.
As a white feminist, I prefer hot black men
lol
Their vehicles and products will sell elsewhere, they are not exactly going to die because Uncle Sam doesn't want them. Even at 100% tariffs on vehicles Chinese-made ones remain cheaper than US-produced. And then the likes of Boeing or GM do not exactly make people want to trust US-engineered products.
@@bazle64
Good answer 😂
Well, the US also bails out large automotive companies and gives them tax cuts!
Isn't that the same?
Don't be fooled, this report is misleading. China and America just did $758 billion US dollar in trade last year. That an all time record high, despite the tariffs. So don't be fooled by this reporting.
Yeah, relying on US manufacturing isnt going to work, cause high wages means high prices, its really just going to go up.
Mexico can take advantage of the trade war and do something. Hmmm but i think without investment boost it likely wont do any good
Biden didn't change his mind, he simply forgot
Driving forces ……election year
The BYD train is here. The overly expensive American auto-market is on it's death bed and I cannot be more than grateful for that.
There is no reason a basic car for running errands should cost more than 15K. The US government should get out of the way and let the free market decide.
I'm hearing that there are EU tariffs incoming on China has well.
Will you do a video on the riots for independence from New Caledonia 🇳🇨?
Funny i remember people throwing around slurs at Donald trump for the same economic moves.
The trade deficit between the US and China is so large that these few categories don't change it that much. It's not going to "isolate" either country by any measure.
Just going to cost us the American consumer more for worse products. China will continue to use to improve, American manufactures will continue to coast with no competition leaving us with worse and more expensive products
Japan was crucially dependent on American oil before WWII. This was the fuel the entire war was based off of, and yet dependency did nothing to stop their attack on the U.S.
It did cause them to lose. Submarines strangled the Japanese shipping and economy.
Japan's "attack on the US" was a strike on military assets that the US was using to blockade Japan from getting oil. They didn't just randomly do it for fun, duh.
The US reacted to that strike by declaring a full-scale war against Japan.
@@Ramschat
Nope.
Japan only lost because they opened multiple fronts in a full scale war.
Otherwise they would have completely destroyed the USA.
All the United states need is to subsidize the construction of local businesses, become more leanient on immigration to meet the eventual increaee in labor demand, instill a protectionist policy against hostile powers, a mercantile stance on nutral powers and a free trade stance on allied powers.
"Trade dependencies are way of avoiding conflict between two countries". I don't think Vladimir Zelinsky it's going to give a lot of credence to Frédéric Bastiat!
The prisoners' dilemma. Game theory at it's worst.
commment for the great algorithm - the thing with the prisoners dilemma example is that the Chinese economy is already fairly protectionist with its security laws and state backed corporations so this is more like a tit for tat situation.
More like we put all our hopes in a South African man-child that can’t stack up, and now we need to rig the game a little.
When communist china plays better the game of capitalism, the US capitalist plays the communist cards!
What happened to those free market economy rules?
Rules only work when they’re followed, and China’s rise has depended on how often they get away in breaking them with their mercantilist strategies.
God china is not communist they are statist capitalists they just call themselves communists because it's politically convenient
Do you think if one doesn't follow physic laws, physics get upset and start acting differently?
If one has a firm believe in something, he never puts down his integrity
The US has never been a free market, massive subsidizer of its domestic industries particularly agriculture. It wants others to reduce tariffs, duties and subsidies, yes.
I suppose I approve of tariffs against hostile powers (whatever the reason-right or wrong-for their hostility), but I feel that this should be accompanied with investment (done in installments) into the relevant industries, with certain strings attached like (for example) an increase in pay for most workers by 10% within 4 months. To do this the money would need to be earmarked in a budget for this purpose, and to keep it short the coordination for this would require that this sort of thing be timed with the coming of a new yearly budget.
Thank god you don’t run the economy.
Correct, I’m neither an economist nor a dictator. Also, nobody “runs the economy”.
Russia's economy was interlocked with European economy. That didn't stop them.
These tariffs are a bad idea. Think about it. Everytime tarrifs have been increased, it has lead to a recession, or turned a recession into a depression
It all for show. It called "Capitalist Propaganda" or "Lying". You see I read actual economic reports "theluffinater". You should too by the way. America and China just did $758 billion US dollar per year. That is a record amount of trade despite tariffs put on by Donald Trump and Joe Biden. These two jokers got you thinking they are tough on China when in reality they pulled the "wool over your eyes".
Maybe if the West bothered to invest properly in EV tech this would be less of a concern idk. It seems to me that's just what China's subsidies are - investment.
I hope they don't do a tariff policy here, a BYD Han seems like a nice car
Bastiat's based!