|this is getting better<g> Looks like a trade war bet. China and the U.S. is getting more momentum<g> Who will blink first?|
Here is a Chinese article talks about this,
the following is my translation:
1. In the worst cases, China lost the entire U.S. export market, that would send China back to where they were in 2008, when exports declined dramatically. According to the latest data from Chinese gov., the exports to the U.S. counts 13.5% of ALL China's exports, the U.S. imports to China counts around 5% of all U.S. exports.
2. But if the U.S. wants to increase their exports, China will be the KEY. In 2009, China exports to the U.S. declined 12.5%, while the U.S. exports to China ONLY decreased 4.8%. Obama's dream of making the U.S. a big exporter again will remain a dream without China's market!
3. Most of China's exports are necessities and low-value added product, relatively competitive in both quality and price. While most of U.S. exports to China is agricultural product, and other high value-added product. China is, after all, a big agricultural countries. Large quantity imports of the U.S. agricultural product already sparks many complains from China domestic producers. Plus, ALL U.S. agricultural products are heavily subsidized by the U.S. gov., so a trade war bet. the U.S. and China would result favorably to China in this aspect.
Fast growing Chinese car market is very important for big 3, GM, Chrysler, and Ford, and they would be much worse off than what they are now without China's market in the last two years.
4. China's big holding of US$ debt is another weapon which should help China in case of a trade war<G>