usmbguest5318
Gold Member
As much as it's clear that North Korea (NK) and it's leader Kim Jong Un is a threat at least to Japan and South Korea (SK), the fact remains that NK is not much if any threat to China. In spite of that, it seems the U.S. wants to pressure China to bring greater economic pressure against NK.
It makes sense that the U.S. would want China to do that, but looking at it from China's POV, there's no apparent gain for them in doing so. They'd merely be doing the U.S.' bidding for the sake of doing it.
It makes sense that the U.S. would want China to do that, but looking at it from China's POV, there's no apparent gain for them in doing so. They'd merely be doing the U.S.' bidding for the sake of doing it.
- Trump's been quite clear about his disapproval of the trade imbalance between the PRC and the U.S. and his desire to reduce the imbalance. His take steps to effect that end won't benefit China and it won't benefit U.S. consumers either.
- Manufacturers are already exiting the PRC in favor of lower cost of production countries.
- With nearly 2 billion residents, China is the world's largest growth economy.
Foreign manufacturing or not, China is a two-billion-person strong domestic economy that has yet to convert to middle class the majority of its people. Foreign investment, though welcomed by the PRC, is not necessary. Absent the foreign investment and the related exports, China will, to be sure, grow more slowly than were it not to lose it, but the Chinese culture is one that appreciates the virtues of the "turtle" as much as it does those of the "hare." Unlike Americans, Chinese don't "flip out" because growth isn't happening at lightening speed. China plays a long game and has a very long cultural memory. And why shouldn't it? China has an unbroken cultural and national history that's endured and thrived for some 5000 years. No other major culture has accomplished that. - China owns ~30% of the U.S. debt. The U.S. can only push but so hard. It certainly cannot afford to tick off the PRC to the point that they start to in large quantities sell off/call in U.S. debt. China sold off some small chunks of U.S. debt and that was easily absorbed. Larger shares of it would not nearly as readily be absorbed.
- NK isn't any sort of any kind threat to the PRC,and China's GDP is supplemented (to whatever small extent) by its trade with NK, which "works" for NK as NK-eans don't, in general, earn enough to pay the price for goods made in many other places. Hell, it's not as though NK imports or exports much other than commodities. (I'm going to hope readers here understand what that implies/means economically.)