hvactec
VIP Member
This article is little unusual for a Monday, when the readership is at its peak. Generally, like other bloggers, I tend to publish articles on practical guidance or practice on Mondays.
For once, let me go out of my way and write on an imaginary situation, a what if kind of world where in US stores Made in China goods will not be seen.
A majority of stuff in big US departmental store chains is imported from China. (imports from other countries are negligible as compared to China). From pen to playbook, name a durable merchandise at a Wal-Mart or a Target and in all probability, it will be Made in China.
Our Govt. can not take decision to put restriction on Chinese imports, because it will be against the order of international trade. But our stores could very well implement a ban.
Now lets get to the imaginary situation, if these big departmental stores stops importing Chinese goods, how the world will look like.
The most immediate aftermath (till first 3 years) will be raised cost of living for us, the dishes and clothes will be costlier. In order for our kids to play, you have to shell out more money. Eventually total US savings will erode rapidly. We, the frugal bloggers will cry foul, we will start inventing and writing frugal methods with renewed vigor.
As with every major change in market, many of us will become poorer. Store sales will go down drastically, resulting in closing out and eventual job loss.
China will start seeing trade imbalance and rapid erosion of its massive foreign currency reserve; it will start selling US bonds in revenge. Value of dollar will go down and US manufacturers will see profit in selling stuffs abroad. As Chinese economy starts going down, it will cease to be a world buyer of oil, raw materials and all other stuff that it now imports, which will make many more economies vulnerable.
American tech giants will feel the heat of retaliation from China. But honestly, do you think 1.5B people in China buying genuine copies of software? You are dreaming like me if you think that way.
READ MORE What If American Stores Stop Buying Chinese Imports, must read! | One Cent At A Time
For once, let me go out of my way and write on an imaginary situation, a what if kind of world where in US stores Made in China goods will not be seen.
A majority of stuff in big US departmental store chains is imported from China. (imports from other countries are negligible as compared to China). From pen to playbook, name a durable merchandise at a Wal-Mart or a Target and in all probability, it will be Made in China.
Our Govt. can not take decision to put restriction on Chinese imports, because it will be against the order of international trade. But our stores could very well implement a ban.
Now lets get to the imaginary situation, if these big departmental stores stops importing Chinese goods, how the world will look like.
The most immediate aftermath (till first 3 years) will be raised cost of living for us, the dishes and clothes will be costlier. In order for our kids to play, you have to shell out more money. Eventually total US savings will erode rapidly. We, the frugal bloggers will cry foul, we will start inventing and writing frugal methods with renewed vigor.
As with every major change in market, many of us will become poorer. Store sales will go down drastically, resulting in closing out and eventual job loss.
China will start seeing trade imbalance and rapid erosion of its massive foreign currency reserve; it will start selling US bonds in revenge. Value of dollar will go down and US manufacturers will see profit in selling stuffs abroad. As Chinese economy starts going down, it will cease to be a world buyer of oil, raw materials and all other stuff that it now imports, which will make many more economies vulnerable.
American tech giants will feel the heat of retaliation from China. But honestly, do you think 1.5B people in China buying genuine copies of software? You are dreaming like me if you think that way.
READ MORE What If American Stores Stop Buying Chinese Imports, must read! | One Cent At A Time
