Earlier quoted context omitted.
A few speculative ideas/thoughts: - The US needs access to China's goods to be viable. For half a century US companies improved their efficiency/competitiveness by moving their process to China. They now have too many dependencies in the form of Chinese manufacturing and development capabilities and do not have the skills/knowledge/talents/infrastructure in the US. Because of this China can dictate their rules with z…
> China owns more than 1 trillion of US debt. In the past the country bought a massive amount of US debt to inflate USD vs RMB and boost their own economy...If the US blocks them they may start massively selling US debt, which would impact USD and the US economy. I think you have this backwards. China bought US treasuries to weaken their currency and increase demand for their goods. If they now sell, they will face s…
I was answering to someone talking about cutting China off the US market (or at minimum adding strong restrictions). In that situation China’s economy is already suffering.