China Trade disputes between America and China
Someone said that China depends on the American market. China will suffer a severe economic downturn when America imposes more sanctions on China.

I disagree. 

China has a large domestic market and a strong manufacturing capability. For the past several years, it has adopted a strategy of "dual circulation". It is developing its domestic market, so that it does not have to rely heavily on the export market. 

That strategy has worked well. 

If there are economic sanctions, China can adjust to the new environment and cut off the American market. It can serve its domestic market and the the emerging countries in Asia, Africa and Latin American. Its economic growth may be reduced somewhat, but the damage will not be severe. 

America will suffer a more severe impact on its economy and the living standards of its people. America relies on cheap imports from China to reduce the cost of living. It will take a long time for America to manufacture the products that it now imports. If America sources them from other countries, they have to pay a higher price.

China will be able to adjust to the trade sanctions better than America can.

Tan Kin Lian

Add Comment

I agree the one suffering the most will be the U.S.A.

Maria  05 Apr 2022  

---