Font Size:
Theme:

Chapter 907:Debt Trap

The ban on the chip of Luo metallurgical is only the beginning of the entire trade war.In the months that followed, the Mepp administration launched a massive trade war offensive against China.

More and more Chinese enterprises are included in the sanctions list, the reasons for sanctions are strange, from why to wear a hat to why not wear a hat, people can see, this is purely a crime, why not say the trick.Some companies on the sanctions list are not allowed to enter the U.S. market, some are not allowed to purchase U.S. equipment and accessories, and some are even restricted from trading with other countries outside the United States, the U.S. government claims that if any country interacts with Chinese companies on the sanctions list, it means violating U.S. law and will be subject to joint sanctions.

Under the pretext that the Chinese government has provided high subsidies to enterprises, resulting in Chinese goods having a price advantage in the US market, Meppe ordered an increase in tariffs ranging from 25% to 50% on goods imported from China, in order to combat the competitiveness of Chinese goods, in order to protect the domestic manufacturing industry, and thus achieve the so-called "America is great again."

The Mep government's trade protection measures are not limited to China, and the Mep government has also introduced a variety of trade sanctions policies for Canada, the European Union, Japan, South Korea, etc., including raising import tariffs, conducting anti-dumping investigations, withdrawing from various trade agreements, etc., which has caused the world to be worried.

It is amazing that people around the world are angry and worried about this trade protection policy of the US government, but in China, there are a considerable number of intellectuals cheering, claiming that this is a "loud slap" to China, will be able to "take back to the original shape" of China.They say China’s prosperity is false and evil, and that as long as their American father sticks out a finger and taps it, China will collapse completely.

However, the noise of such people does not affect the decision-making of the country.In response to the tax increase measures taken by the United States, the Chinese government has uncompromisingly launched a reciprocal counterattack, increased the same proportion of tariffs on US goods sold to China, and claimed to be willing to accompany it to the end.Western countries affected by the trade war have also expressed their dissatisfaction with the policies of the Meppe government, and some countries have also taken some symbolic retaliatory measures.

“President, are the measures we’ve been introducing in recent times too intensive?Many Governments have protested against us.”

Commerce Secretary Fiselle had to alert Mepp.The commercial departments of various countries are making representations to the US Department of Commerce, and importers and exporters in the United States are also quite a word, these pressures are borne by the Ministry of Commerce, and Fizel feels that his shoulders are fast to carry.

“Is it very intense?No, no, this is just the beginning, and our back policy will be even more shocking to them.They get so much cheaper from the U.S. that we're going to get them all back."Mapp said conceitedly.

Fizer said, “But we don’t have to go to war against multiple countries at the same time.If our trade measures are limited to China, we will face less pressure.”

Mapp laughed and said, “Fizelle, you’re too young and your mind is too simple.”Think about it, if our trade measures are only aimed at the Chinese, then the Europeans will watch the lively side and even secretly help China, so that we can lose both our losses with China, and they can take advantage of it.At the same time, when the Chinese have no way back, they will fight to the end with us, and we will suffer a major loss.

And if we start a trade war with multiple countries at the same time, they will be divided.Every country wants us to be able to shift the pressure more to other countries, and in order to cause the disaster, they will make some concessions to us, and in the end, they will all make concessions.”

“Uh . . . . , all right.”Fischer was helpless.You are right, the four sides of the enemy of this kind of soldiers taboo, you can say the great reason, said I am the pattern of the broken, what can I say?

“Haven’t the Chinese made a compromise in the last few weeks?”Mepp asked Fizel.

Fizer shook his head: “No.The Chinese government has claimed on many occasions that they want to maintain a normal international trade order and that they want to be able to resolve trade disputes with us through negotiations.However, they did not directly offer compromise, but also a strong response to our measures.We have raised import tariffs on Chinese goods, they have raised tariffs on imports from the United States in the same proportion, and they have indicated that they will accompany us in the future if we take further steps.”

“Aren’t they afraid of losing the U.S. market?”Mapp asked.

Fizer shrugged and said, “I don’t know.But the Chinese, who were preparing for the trade war for years, have spent a lot of money to nurture markets in Africa and elsewhere.In the past two years, only the African market has helped the Chinese to digest the production capacity, which can reach one-third of the US market.They are now also engaged in a lot of international cooperation in Central Asia, West Asia and Latin America, providing funds and technology to these regions to help them develop their economies so that they have enough purchasing power to buy Chinese goods.If the Chinese measures are successful, the U.S. market will be significantly less important to them.”

"That was the grave mistake my ex made."“They completely ignored the Chinese expansion in Asia, Africa and Latin America, and these regions have become Chinese spheres of influence.”For example, I have heard that Argentina has been very close to the Chinese recently, who have bought a lot of soybeans from Argentina, and these orders should have belonged to American farmers.”

“Well,” Fiselle thought, before saying, “Argentina’s economy has been very bad in recent years, and the government’s finances are in trouble.”They had asked us to give them $10 billion in official loans to help them balance their fiscal deficit.But then the Chinese gave them these loans and signed a local currency swap agreement with them.”

Fizel omitted a passage in the middle, in fact, the decision to refuse to provide a government loan to Argentina was made by Mepp.The reason for Mepp is that the U.S. government should follow the principle of American first, the United States itself is a debt, why should it provide loans to Argentina?Argentina, let them solve it on their own, the United States does not have this obligation to help them.

Mapp’s view sounds justified at first glance.But the refusal of Argentina's request for help means that Argentina has been pushed to the Chinese side, and the market interests and geopolitical interests that the United States has lost, and the geopolitical interests can be bought for $10 billion.

Looking at China, per capita GDP is less than one-fifth of that of the United States, but it is willing to spend money to do good.A few years ago, the Chinese government announced that it had cancelled the accumulated debt of 10 billion US dollars in some poor countries in Africa in exchange for all-round cooperation between these countries and Chinese enterprises.In just a few years, there are Chinese people all over Africa who are doing business, and Chinese goods in ships and ships are shipped to Africa in exchange for oil and ore from ship to ship.The Commerce Department hired a think tank to do research and concluded that for every dollar Chinese spend in Africa, they can recover at least $10.

These words, Fizer and other American officials have said to Mepp more than once, but Mepp has gone awry and is still doing its best.Fizel and his colleagues had argued privately that Mapp didn’t really understand the truth, he just had his own ideas.You know, helping their international allies can make the United States a long-term benefit, but in the short term, the United States is at a disadvantage.American voters want what they can see in the future, not the future gains.Mapp plays the banner of American first, squeezes allies, overdraws the future interests of the country, but it caters to the psychology of voters, which is a wise campaign strategy.

Mapp has only two terms on stage, eight years.What happened to him after eight years?These people are different, they want to do it for a long time in their own position, let Mepp so toss, what will everyone do in the future?

Mepp seems to have failed to hear the grievances in Fischer's words, and he nodded and said, "Yes, the Chinese are now issuing loans everywhere, which is very bad for the countries."

“Yes, Europeans are also very worried about this, fearing that their traditional sphere of influence will be cannibalized by the Chinese.”Fizel said.

“I don’t mean that, I mean, that the Chinese give loans to Africans and Latinos that would drag these countries into a debt trap.”Fizer, the Ministry of Commerce should consult with the governments of these countries to issue a joint statement condemning the Chinese for providing them with large loans.”

“Wait, President, I don’t quite understand...” Fizel cluttered.What, for Africans and Latin Americans to issue a joint statement condemning the Chinese for providing them with large loans, are you sure you’re thinking with the human brain?As a result, the United States and Europe are in financial trouble, and only the Chinese people in the world can lend a hand to them.

Mepp said: "Fizel, think about it, these countries are poor countries, the Chinese provide them with loans, can they have to go up in the future?"If not, they will have a debt crisis, and their economy will collapse.So the Chinese seem to be helping them, but they are actually hurting them.The Ministry of Commerce has an obligation to tell these governments about this, to get them to reject Chinese loans, and to drive Chinese companies out.”

Comments

No comments yet. Be the first to comment on this chapter!