Now the US and China had engaged in a trade war.
Losers
1) The main losers are Finish Goods exporter from China to the US and vice versa.
2) Those working in work in progress (WIP) and their supplier which supply goods from developing countries that sell to China or the US will suffer too.
3) Technology goods will suffer, cost of business increase as China is the technology factory of the world (1/3 of technology goods come from China) and US technology as well will suffer due to drop in demand. Furthermore, a supply chain provider from other parts of Asia will suffer as well.
4) China will dump the US dollar and US recession is inevitable due to cost-push inflation or stagflation that most probably will occur.
Beneficial.
1) China and US exporter will dump their goods to importer from the rest of the world at a cheaper price.
2) China and US importers need to substitute their products from exporters from other countries at a higher price based on "take it or leave it" formula.
3) China will dump US dollar and this benefit company with lots of debts like Malaysia.
4) China converting US bonds to commodity will start a commodity supercycle and benefits country which have their economy based on a commodity like Malaysia.
Conclusion, in this trade war, the US will go bankrupt and for every new job gain from the trade war, 10 US worker will be out of jobs.
In a longer term, factories in America and China would have to close and consumers would have to pay the brunt of the trade war with higher price for essential goods.
God bless America and you.
Halleluyah.
In God we trust,
Dr Lion.
Losers
1) The main losers are Finish Goods exporter from China to the US and vice versa.
2) Those working in work in progress (WIP) and their supplier which supply goods from developing countries that sell to China or the US will suffer too.
3) Technology goods will suffer, cost of business increase as China is the technology factory of the world (1/3 of technology goods come from China) and US technology as well will suffer due to drop in demand. Furthermore, a supply chain provider from other parts of Asia will suffer as well.
4) China will dump the US dollar and US recession is inevitable due to cost-push inflation or stagflation that most probably will occur.
Beneficial.
1) China and US exporter will dump their goods to importer from the rest of the world at a cheaper price.
2) China and US importers need to substitute their products from exporters from other countries at a higher price based on "take it or leave it" formula.
3) China will dump US dollar and this benefit company with lots of debts like Malaysia.
4) China converting US bonds to commodity will start a commodity supercycle and benefits country which have their economy based on a commodity like Malaysia.
Conclusion, in this trade war, the US will go bankrupt and for every new job gain from the trade war, 10 US worker will be out of jobs.
In a longer term, factories in America and China would have to close and consumers would have to pay the brunt of the trade war with higher price for essential goods.
God bless America and you.
Halleluyah.
In God we trust,
Dr Lion.
