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US Summary:

Fact is that the average US citizen believes China is responsible and supports tough economic measures and sanctions. And Donald Trump is milking this for all its worth to win the next election.

Sinophobia Trump
Flag not made in China

The US economic action against China

Right now, President Trump is looking at significant economic action against China. The increased anger over how the Chinese Government has handled the coronavirus pandemic gives him the strength.

 The President has rightly accused Beijing of a cover-up that that has pushed the global economy into a major recession. The US-China Trade wars will heat up, reaching boiling point soon.

This threatens to end the ‘partial’ January trade truce between the two countries. Trump says if China reneges on purchasing American goods he will scrap the agreement. This means much higher tariffs on China imports. For now, both China and the United States have said that their trade talks are back on track

The only question is how far the United States is willing to go?

Does China need the US, or does the US need China? Who will blink first?

If anything, the Coronavirus has only accelerated the underlying tensions between Washington and Beijing.

Tensions between America and China have always been high. The amount of American exports to China has fallen in the first quarter this year. If I were a betting man, I would say that Trump will not blink (he got his wall didn’t he?). He will lead America on a new and popularly supported Sinophobia crusade to make the US Great again.

Even if the Democrats win the US Presidential election in November, it may be impossible to unscramble this omelette.  

Extreme measures such as arbitrarily cancelling all or part of the debt America owes to China have been mentioned. While not yet seriously entertained by White House officials, in Trump’s case where there is smoke, there is usually a hulking fire.


American tech companies are starting a mass exodus from China

It’s not just the American Government that’s taking action against China.

Numerous global American-based tech corporations and electronic makers want to shift their production out of China. For three reasons.

First, is that there is an anti-China-made sentiment. For example, in phones, it could push Samsung and LG well ahead of Apple.

Second, it is not wise to put all your eggs in one basket. The CCP solely controls China. It could mandate in one fell swoop to screw foreign interests over leading to chaos. China’s home market is large enough to satisfy its friends like Huawei, ZTE, TCL, Hisense et al.

Third, In the Made in China 2025 program China says it will not be the cheap labour source for the West.

Instead, it wants to dominate: global aviation and aerospace; agriculture; electrical power; new energy; automotive; robotics; Infotech; new materials; rail; maritime; biomedical – and throw in AI as well.