This outcome was entirely predictable for anyone with even minimally functional reasoning capacity. The US launched a trade war against virtually the entire world. China, conversely, is fighting a trade war solely against the US. Naturally, China has abundant opportunities to redirect trade away from the US and towards the very nations the US is simultaneously attacking economically.
Furthermore, US officials expecting Chinese companies to absorb their tariffs demonstrate another failure of basic logic. Companies will not eat costs, they will simply find buyers elsewhere. Buyers outside the US need only pay more than the post-tariff US price minus the tariff cost suppliers are expected to absorb. In practice, this means Chinese goods become cheaper and more competitive for the rest of the world, while the US market faces reduced supply and higher prices. The US strategy is actively gifting China market share globally.
china will also cut off a bourgeios head for price gouging, meanwhile we’ve had proof since 2020 that most “inflation” was just companies jacking up prices and wow would you look at that it’s happening again, it just keeps happening
Exports to US fall, but overall exports increased for China. Seems like some people here got their analysis wrong.
This outcome was entirely predictable for anyone with even minimally functional reasoning capacity. The US launched a trade war against virtually the entire world. China, conversely, is fighting a trade war solely against the US. Naturally, China has abundant opportunities to redirect trade away from the US and towards the very nations the US is simultaneously attacking economically.
Furthermore, US officials expecting Chinese companies to absorb their tariffs demonstrate another failure of basic logic. Companies will not eat costs, they will simply find buyers elsewhere. Buyers outside the US need only pay more than the post-tariff US price minus the tariff cost suppliers are expected to absorb. In practice, this means Chinese goods become cheaper and more competitive for the rest of the world, while the US market faces reduced supply and higher prices. The US strategy is actively gifting China market share globally.
Especially in china where the business model is basically cut costs to the bone and win scale instead of profit margins.
Western corporations favor profit margin, maximize ROI. Which means western corporations set prices based on what the buyer will tolerate.
Chinese corporations favor scale. Which means prices are based largely on cost.
It’s like expecting Walmart to absorb the price of eggs. It’s not their business model.
china will also cut off a bourgeios head for price gouging, meanwhile we’ve had proof since 2020 that most “inflation” was just companies jacking up prices and wow would you look at that it’s happening again, it just keeps happening
You say that it was predictable for anyone with basic reasoning, but Xiaohongshu predicted it would play out very differently
You’d think xhs would be the one place people would know better.
I think freagle is referring to the user, but your comment seems to be about the social media site
ahhh right
Correct