Trade War - who can hold out longer

What is happening in China how are the people in the street reacting, what are their fears and how do they see the future.  Fox News believes that Chinese people are running scared and the Government is under pressure, but is that true?

Fox News says that Chinese people are feeling the pinch ...

Having lived and done business in China for the past 8 years and being immersed in the culture and the business is very much tied to what happens in China so we feel the impact of the ebb and flow of the economy.

Reading the western perception of what news outlets think is happening in China and yes even following Fox News which admittedly is taken in very small doses because it has become the propaganda voice of the administration, but it does allow for a fuller view of what Americans across the spectrum believe.

Tariffs are here ... no one seems to notice in China

The deadline has come and gone, tariffs have been implemented, the USA fired the first shot and the war is on. While there has been some impact which is undeniable the overall effect of the Trump Administration tariffs has been rather underwhelming.

Why is China not as affected by the trade war as what the USA Administration thought it would have been, to answer this question one has to go back to 2013 when Xi JinPing was elected to the highest office in China.

One of the biggest drawbacks to China’s position in the world was a general lack of confidence, in discussion Chinese people would almost be ashamed of being Chinese, they felt that the world saw them as being second class citizens, factory workers only good for making cheap product. This has changed under President Xi, now there is a pride in Chinese people that was not there before and this is due to a number of factors.

Xi JinPing changed China into a proud nation ...

The first is President Xi has waged a relentless war against corruption, we feel this in our business where in the past there was an expectation by some people in power that they would receive certain favors, today we do not see that happening, business is conducted in an honest and upfront manner if you follow the procedures everything goes smoothly just as in any advanced country in the world.

President Xi JinPing has also endeared himself to the people, he cuts across the bureaucracy and gets things done quickly. He has a heart for the people and has not forgotten the people he takes time to visit ordinary people in their homes. President Xi JinPing may end up in history as being one of the most influential leaders of modern China as well as globally. He is by far one of the most accomplished Politian’s on the world stage today and is a voice of reason in a world battered by the rantings of the undisciplined administration of the USA.

China has unveiled the largest radio telescope in the world, they have put a rover on the moon, space stations in orbit and are arguably the largest economy in the world today depending on the metrics you use to measure the economy … (see the CIA Fact book)

All of these achievements and many more have started to affect the mind-set of the people today Chinese people are proud to be Chinese, they have started to develop a true national identity and pride.

Chinese are proud to be Chinese ...

So how does this affect the Trade War outcome, well it is quite simple, China and Chinese people no longer see the USA as being their savior. The Belt and Road initiative of President Xi JinPing has built up a much broader base for the Chinese to turn to for the sale of their goods. China has built up trade partnerships with Europe, South America, Africa, Middle East and Russia, all of which offset the impact of any trade war with the USA.

With the development of a national pride Chinese people are willing to stand together and defy any country that tries to blackmail it.

Chinese people are standing together and will find a way to minimize the risk of the effects of the Trump Administration on the Chinese economy. China has in every way grown up over the past few years they are no longer the second class citizens of the world they stand shoulder to shoulder with any nation including the USA and will not be affected by threats that they know is limited to the duration of the current administration.

China has enough trading partners to survive, does America?

In short there has been very little effect on the daily lives of the Chinese people in the street and even if the current Trump Administration tries to attack China with everything in his economic arsenal it will not have anywhere close to the effect that this is having on the American people. Here in China it is business as usual and will continue to be.

In any war there are no winners, everyone will lose out, the question is who can survive the longest, China has a diverse range of trading partners while the current USA Administration is doing all they can to alienate themselves from their trading partners.

What is sad is that the people who are going to be affected the most are those who can least afford it certainly those who have started this war are well positined personally not only to ride it out but will be in a position to profit substantially in the long run.