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Chinese manufacturing growth slows to a 14month low

Posted on 9/3/18 at 5:23 am
Posted by trinidadtiger
Member since Jun 2017
13290 posts
Posted on 9/3/18 at 5:23 am
Manufacturing of state owned companies slowed to a 14 month low.

Inventories are building.

Private sector data should be released today. The expectations are that they will be worse, given the govt crackdown on non traditional financing has hurt this sector hardest.

Given the fact they are facing 200 billion more in tariffs, the aforementioned numbers should be heading in the opposite direction.

The silk road project is also hitting serious speed bumps in various countries who are balking at the debt being heaped on thier countries.

Ole Xi wanted total control, with that comes...total responsibility.

Posted by Eli Goldfinger
Member since Sep 2016
32785 posts
Posted on 9/3/18 at 7:37 am to
I would be ok with just cutting off all trade with China.

By nature, they don’t play fair and consider it an honor to fuq over their business partners.
Posted by TaderSalad
mudbug territory
Member since Jul 2014
24625 posts
Posted on 9/3/18 at 7:39 am to
quote:

200 billion more in tariffs


What have you done? You just summoned the CrackReeeeeman.
Posted by trinidadtiger
Member since Jun 2017
13290 posts
Posted on 9/3/18 at 7:46 am to
quote:

What have you done? You just summoned the CrackReeeeeman.



Sometimes ya just have to call em out by name Tader, where ya at Xi "IB" Freeman???
Posted by bamarep
Member since Nov 2013
51794 posts
Posted on 9/3/18 at 7:50 am to
IB won't like this.



He won't like this one fricking bit.
Posted by I B Freeman
Member since Oct 2009
27843 posts
Posted on 9/3/18 at 7:57 am to
This is an example of why the tariffs will not work.

They are still communist to great degree. These state owned companies do not really care about the prices of their goods. They are going to continue to operate regardless of profitability. They were making aluminum when no one in the world could produce it profitably.

Their economic system is just so different. You will starve to death in China if you do not work. They have no real welfare. They believe you have to work so the state owned companies have as a mandate employment. In a lot of ways employing people is more important to them than profits. Their inventories are often way out of line as the OP says.

Regardless of what Trump and Ross say about national security this trade war is about access to Chinese markets by US companies. They want to force the Chinese to allow US companies to invest in China without taking on Chinese partners. They want to protect IP when they invest there. All of these things are understandable BUT they have nothing to do with US national security.

If we really want to hold China back we should be glad they are foolishly restricting foreign investment. We should be glad they do not protect IP as they should in China. Do you know any significant Chinese technology or brands? There are none because new technology is not profitable because it is not protected.

Force them to use those massive foreign reserves they have by foolishly restricting foreign capital from entering their economy.

I know it is foreign to the thinking of this board but we should simply let them tariff what they want to tariff. It hurts them more than it will help us.

Allowing them to sell things in the US cheaper than we can make it is a good thing too. Why use our labor to make steel, for example, that the Chinese are willing to subsidize steel production freeing our labor to make 787s and to program iPhones and the other million things we do so well.

Proponents of Trump's tariffs are simply wrong when they say those imports have hurt our economy. Trump is wrong when he cites national security to tariff things like bicycles and wedding dresses. He is toting the water for large multi national US companies that want to invest in China and that is simply fact.

I would love to see US companies expand into China but I am not as concerned about the rise of China as many here are. If you are really concerned about the rise of China you should oppose these tariffs and let them continue as they are. Xi wants to be more of a command economy and that will only slow their growth as the OP points out. If we are successful in using the tariffs as leverage to allow more US investment in China--which is what we are doing--the Chinese economy will have more sources of capital to grow.

(The $200 billion in tariffs will not influence China to any degree. What Trump hopes for is that the Vice Premier has his way and convinces Xi to move to freer markets. If he does they will respond to the tariffs if not they will simply continue production of items they sell here and collapse the market prices of those items worldwide. They have huge currency reserves that will allow them to do that.)

This post was edited on 9/3/18 at 8:07 am
Posted by TigerAxeOK
Where I lay my head is home.
Member since Dec 2016
24649 posts
Posted on 9/3/18 at 8:09 am to
quote:

Why use our labor to make steel, for example,
Why a lot of things? How about because China has been stealing our intellectual property for decades? How about because we are more concerned with employing Americans than employing another country's populous? How about because China devalues their currency and manipulates the global market whilst stealing industry from its competitors and shutting down factories and killing thousands upon thousands of jobs in other nations?
Posted by bamafan1001
Member since Jun 2011
15783 posts
Posted on 9/3/18 at 8:18 am to
quote:

Why use our labor to make steel, for example, that the Chinese are willing to subsidize steel production freeing our labor to make 787s and to program iPhones and the other million things we do so well.


We have enough labor to do all these things...so do the Chinese.
Posted by bamafan1001
Member since Jun 2011
15783 posts
Posted on 9/3/18 at 8:20 am to
quote:

Their economic system is just so different. You will starve to death in China if you do not work.


Enough starving citizens and you have revolution...
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
73210 posts
Posted on 9/3/18 at 8:26 am to
quote:

This is an example of why the tariffs will not work


just move yourself and your business to China then stfu with your wall of melt
Posted by Jbird
In Bidenville with EthanL
Member since Oct 2012
73414 posts
Posted on 9/3/18 at 8:28 am to
Man I wonder if he ever figured out how to cover the $2mill the tariffs will ding his mythical bidness?
Posted by Stingray
Shreveport
Member since Sep 2007
12420 posts
Posted on 9/3/18 at 8:28 am to
quote:

Why use our labor to make steel, for example,


And on top of the economic reasons, China has participated in a Proxy Nuclear War against us by way of North Korea.
Posted by Turbeauxdog
Member since Aug 2004
23139 posts
Posted on 9/3/18 at 8:30 am to
quote:

know it is foreign to the thinking of this board but we should simply let them tariff what they want to tariff. It hurts them more than it will help us


This is just economically ignorant short term thinking.

Posted by Rebel
Graceland
Member since Jan 2005
131226 posts
Posted on 9/3/18 at 8:30 am to
quote:

IB won't like this.


but muh soybean futures
Posted by jimmy the leg
Member since Aug 2007
34001 posts
Posted on 9/3/18 at 10:10 am to
quote:

All of these things are understandable BUT they have nothing to do with US national security. 



We will agree to disagree. A weak economy is a threat to national security imho.

quote:

Allowing them to sell things in the US cheaper than we can make it is a good thing too. Why use our labor to make steel, for example, that the Chinese are willing to subsidize steel production freeing our labor to make 787s and to program iPhones and the other million things we do so well


Cheap products are great IF you are employed and can afford them. If not, then the price could be one red cent and it would be unaffordable.

As for "what we do so well", you do realize that China has stolen massive amounts of know how through intellectual property theft..right. They then use "state sponsored" labor to undercut the pricing of the victim of the theft. In short, how long will it be until the "jobs that we do so well" are all based in China? I gave the example of Segway/Ninebot. That is just the tip of the iceberg.

As noted before, my parents worked for a state run company in China (in large scale construction and fabrication no less). As such, I feel that through them, I have insights that you don't. If you don't know anything else about this situation, you need to know this...dont trust the Chinese. The rest of the world is beneath them and not worthy of their respect (including the USA). You have to force their hand. I have also stated, that my views aren't negative towards China. In all reality, they are based on my respect for them and what they can accomplish.
Posted by jimmy the leg
Member since Aug 2007
34001 posts
Posted on 9/3/18 at 10:17 am to
quote:

This is an example of why the tariffs will not work



  just move yourself and your business to China then stfu with your wall of melt



Based on his passion, he must be tied to China economically in a big way. From what I have read by him, this seems more about his personal circumstances than what is best for our country imho. IB is obviously intelligent, but passion can influence intellect. In the very least, he and I will have to agree to disagree on China.
Posted by goatmilker
Castle Anthrax
Member since Feb 2009
64156 posts
Posted on 9/3/18 at 10:25 am to
Uh no. Not till you switch and help with establishing low cost manufacturing to Central and South America
Posted by LSUvet72
Member since Sep 2013
11762 posts
Posted on 9/3/18 at 10:30 am to
Put XIII and those cheatin, stealin’ SomA Bitches out of business.....

Charge me another $200 for a washer, extra $1,000 for a car but put those slanty eyed Som A bitches into global bankruptcy......


Like we did the smart arse Japs in the nineties who wanted to buy one- half of America....

Posted by BestBanker
Member since Nov 2011
17473 posts
Posted on 9/3/18 at 10:42 am to
But muh fiya crackah!
Posted by Wheaux
San Diego
Member since Jul 2018
1748 posts
Posted on 9/3/18 at 11:33 am to
quote:

I B Freeman
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