With Phase 1 of a China/US trade agreement now past, my hope is for the Chinese people to find a way forward to truly join the world in peace and prosperity.
It would be the first time ever. China still operates as it always has. The Peoples Republic of China is another Dynasty in my opinion. China’s Dynasties have a rich history of warfare dating back thousands of years. Every war ends and it is usually with a negotiated agreement.
Phase 1 is an excellent start. The rules of the game are rather uncomplicated. If we catch the Chinese cheating on counterfeit handbags or sneakers for instance, we have 90 days to reach a resolution with the Chinese on the issue. If the situation is not resolved within that 90-day period The United States will institute “snap back” tariffs at an adequate amount until the situation is resolved or not. China’s only recourse is that they can choose to pull out of the agreement.
Think about that for a moment. That means our economics are on sound footing in either case. Tariffs are not fun, but yes, they work. The hope is that China finds a way to operate in the world markets and be counted as worthy of doing business with.
China has unbelievable internal struggles. My research has yielded discoveries that Americans would find difficult to believe. I highly suggest clicking the link provided for the documentary “Death By China: How America Lost Its Manufacturing Base”. This was a collaboration with Peter Navarro who is one of the key architects and negotiators of the Phase 1 deal. The documentary was made before President Trump took office.
China could not have anticipated what America has done in the past three years. No American President from either party has had the intestinal fortitude to not only stand up to the Chinese, but also the multinational companies that would want the status quo to remain. Our trade stance has severely impacted an expansive China that seems to have based its expansion on cheap labor and an export strategy. That strategy has lost its momentum. Because we have done what we should have decades ago, China has to consider not just how America feels about trading with them, but now Europe, India, and others who are now emboldened for fairer trade relationships.
America has in a very short period of time (244 years) come to be a truly great nation that provides those that live here the pursuit of happiness and the ability to create and realize their own dreams. For all of our faults and all of our fortunes, our problems and our promise, we continue to move forward as a free and prosperous society.
We must stay the course of free and fair trade if China is ever to join the world on even ground.
The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of The Lincoln Investment Companies.
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The views and opinions expressed herein are those of Robert Restino and may or may not represent the views of Lincoln Investment. The material presented is provided for informational purposes only. Nothing contained herein should be construed as a recommendation to buy or sell any securities. As with all investments, past performance is no guarantee of future results. No person or system can predict the market. All investments are subject to risk, including the risk of principal loss.