This past week, the US and China began their trade war, as both countries implemented tariffs on specific products. Some of these products include soybeans to airplanes. This trade war has a lot of DIME elements in it.
In the Diplomatic area,
The Trump administration fulfilled one of it’s campaign promises creating better trade agreements with our partners and targeting those who take advantage of US trade agreements. China was at the forefront in the Administrations list of unfair trade partners.
Here is what’s at stake.
China has asked the European Union to join them in the trade war with the US. The EU has yet to make a decision but talked of a trade war with the US as President Trump seeks to reverse trade agreements he feels leave the US at a disadvantage.
In the Informational arena, the rhetoric from China has been endless.
As President Trump implemented another $100 Billion in tariffs when China responded to his first round. The Chinese government reacted swiftly with renewed threats.
The Military area is more concerning to me.
China also has built up their South China Sea bases on numerous islands as I’ve written about before. What this means is China’s logistics resupply chain is short, the US and their allies much longer. Remember, smart men and women study tactics, but brilliant men and women study logistics.
Here is a good scorecard on how the US and Chinese militaries stack up against each other. China has said several times it will implement an air exclusion zone over the South China Sea.
The Economic area is very volatile.
China is targeting several key industries in the trade war.
China has one very frightening ace in the hole to use against the US: China owns a large portion of our deficit.
Strap in and grab a bucket of popcorn, this trade conflict is going to be an interesting ride.
— Final note, please let me know your feedback and suggestions on Twitter, your thought on this weeks DIME, and what do you want more or less of? Let me know by sending a tweet to @MarkHasara and put #nationsdime in the header.
Have a great weekend!
P.S. — If you’re reading my book Tanker Pilot: Lessons from the Cockpit, I’d really love to hear your thoughts in a review on Amazon here or Barnes and Noble here. I read them all.