Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

China Started the Trade War

March 23, 2018 By Jeremy Jones, CFA

By kckate16 @ Shutterstock.com

Greg Ip points out that the tariffs the Trump administration plans to enact on Chinese goods are not a preemptive strike. China has been engaged in predatory trade practices for years. This is well worth a full read and helps to put the tariffs into perspective .

If there’s a trade war between the U.S. and China, don’t blame Donald Trump : China started it long before he became president.

Even free traders and internationalists agree China’s predatory trade practices—which include forcing U.S. business to transfer valuable technology to Chinese firms and restricting access to Chinese markets—are undermining both its partners and the trading system.

Mr. Trump’s China crackdown is risky, but it’s on firmer legal, political and economic ground than many of his other trade complaints, for several reasons.

  1. These products are different:The classic case for free trade predicts that each country specializes where it has a comparative advantage, lowering costs and raising incomes for everyone. If China subsidizes exports of steel to the U.S., in theory the U.S. still benefits because consumers and steel-using industries will have lower costs, and while some steel jobs will disappear, more productive jobs elsewhere will take their place.

But starting in the 1980s, economists recognized that comparative advantage couldn’t explain success in many industries such as commercial jetliners, microprocessors and software. These industries are difficult for competitors to enter because of steep costs for research and development, previously established technical standards, increasing returns to scale (costs drop the more you sell), and network effects (the more customers use the product, the more valuable it becomes).

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • There Will be a Winner in the U.S. China Trade War
  • Can China Restore Confidence in the Heat of a Trade War?
  • Why the U.S. Can Beat China in a Trade War
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Resilient Nordic Market Spawns Fast Growing Offshoot - August 9, 2022
  • SHOCK: Home Prices FALL in San Francisco as Market Dries Up - August 8, 2022
  • Despite All the Money Involved, Crypto Is Still a Wild Market - August 5, 2022

Search Young Research

Most Popular

  • The Key Ingredient to an $8 Million Estate Is This
  • SCHUMER-MANCHIN: An "Inflation" Bill that Doesn't Fight Inflation
  • NO GO ZONES: The Wealthy Protected, the Rest Left to Rot
  • Do Governments Cause Recessions On Purpose?
  • The Power of a Compound Interest Table
  • American Manufacturers ALARMED by Schumer-Manchin Tax Hike Plan
  • Is a Housing Market Crash Next?
  • Do You Have $500,000 in Savings? Avoid This Nightmare
  • Field of Dreams: You Too Can Live Like a Billionaire
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • DeSantis Leadership: Good Government and Smart Politics
  • The Most Vulnerable Will Suffer at the Hands of Anthony Fauci
  • If the Phone Doesn’t Ring…It’s Me
  • REGION AT RISK? Chaos of War Surrounds Ukrainian Nuclear Plant
  • Did China Buy Land in North Dakota to Spy on Air Force Base?
  • 2.5 YEARS LATER: Economy Recovers Jobs Lost in Democrat Lockdowns
  • Immigrants Poised to FLOOD THE BORDER After Democrats Reject Title 42
  • STAND UP FOR MAIN STREET AMERICA! Subscribe to My Free Weekly Email
  • A Conservative Case for Optimism
  • What’s Up in the Amazon?

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.