Chinese factory prices continue fall, inflation soars, manufacturing shrinks

quote:

---

While negotiating "in good faith" they just told G20 to go pound sand and are dumping steel again....and still stealing our IP.

---

That's how their culture works. Don't expect them to ever change. Asians are not innovators, however they are good at copying.

quote:

---

That's how their culture works. Don't expect them to ever change. Asians are not innovators, however they are good at copying.

---

Very true Bucky. You know if we do keep on the tariffs it will have to be to the degree that the tariffs are more painful than the 100s of billions they are making off IP theft.

Lets say a chinese company makes 50 cents on a one dollar sale. We imposed a 25% duty. Those companies with duties have seen export sales decline by around 25% which means they are now making 37.5 cents. In addition, given the drop in ex factory pricing its obvious they are dropping price so their US importer can keep prices relatively the same, so lets assume they eat two thirds of the duty in pricing, thats another 16.7 cents and they are now making 20.8 cents a unit. That means they have seen a drop in profitability of over 58%, and you are seeing this with the drop in company earnings, as well as the increase in bankruptcies, and the lion's share of new lending going to refinance debt.

My point is, Trump touting the 35 billion in tariffs is just a small piece of the financial impact to the chinese economy. How much more pain will they endure before they honestly stop the IP theft?

Or can they, to your point Bucky, their entire economy is built around theft, to re engineer it to innovation at this point would seem impossible. And it is the govt itself that is doing the hacking with entire departments dedicated to it, they dont endorse it, they actually do it.