The idle Process

On Aug 23, China anounced that it will impose as much as 10% tariff on around $75 billion goods imported from US. In the afternoon, the President of US strike back that the US would heap another 5% tariff on around $550 bilion goods from China. Obviously, there will be input inflation. Most of the tariffs will be burdened by the consumers. As the importers pay the import tariffs, the extra cost will be passed on to the consumers. As US is a democracy country, while China is not. No matter what the hurt the Chinese people get, they can't complain as the CCP controls everything. It's a different story here in the US. The President have big pressure as there are a lot complain. If most US consumers only focus on their own loss during the trade war, then the country will lose the war and most importantly, loss the future. If you always rely on other countries to provide cheaper goods, you are gambling the future on other countries.

US President Trump’s tariff on China’s 200 billion US dollars has risen to 25%, which has caused the US-China trade war to heat up again. Although China has not yet resorted to counter-measures, experts believe that Beijing still holds three major counter-attack weapons, including The depreciation of the renminbi, the sale of US Treasury bonds, and the refusal to purchase US soybeans, etc. But the measures have to be taken carefully, otherwise they may hurt China itself. Weapon 1: RMB depreciation China can offset the impact of US tariffs on the Chinese economy through the depreciation of the renminbi. However, Wang Tao, the chief Chinese economist at UBS, pointed out that the depreciation of the RMB in 2015 caused capital outflows and also weakened domestic confidence. So China may have  concerns to use this weapon. Weapon 2: Selling US Treasury bonds China currently holds US$1.1 trillion in US Treasury bonds. As the biggest amount holder of most US debts, the reduction of US