I pose a question to all good readers of this forum and my question is ……. How to pull US away from China’s export market? US and Europe have themselves too much dependent on Chinese supplies. With that no other country will ever succeed.
I believe that two trillion in Western FDI from 1985 till 2015 built China as we see it today. Now for the West, they are the prime suppliers of everything. Chinese import hardly anything back. That has made them belligerent.
Typically this excessive business with China has to be ended. If we do not end it today then Chinese will get more and more belligerent.
How do we end it?
My restless mind suggests that only way to pull US out is China-US is war over Taiwan.
Is that what you guys think?
China is East Asian economic model on steroids.. Where factors of production like land, Electricity, labor, currency are heavily undervalued to subsidize Production, and household consumption is kept weak, to subsidize domestic production and make exports Uber competitive.. Low domestic demand is made up by "Leeching on Foreign Demand" primarily sucking on Western Demand.. After about 15 years of Chinese authorities saying that they will increase the share of household consumption relative to GDP, it is still just a puny 40 percent.. For poor India its still a decent 60 percent, and 70 percent for US.. CHINESE economy is still over reliant on investment ( primarily infrastructure and also to a certain extent real estate ) and exports..
So, you can say that China is Uber protectionist by simply the way its economy is setup to maximize production and domestic employment, accompanied by non tariff barriers.. and add to it, the clustering effects due to a huge population/ employment pool.. leading it to being a one stop for everything..
So, it will be extremely hard to decouple the US from China, and only a war over Taiwan can help speed.up the process..
Note: This is the reason why MODI government has not signed any FTA with "
DEMAND LEECH PARASITE" EAST Asian economies,, and avoided RCEP like the plague.. and instead has pursued FTA with UAE, UK and EU..