China Communism Vs. American Capitalism: A ‘Fake Deal’ In The Making

The trade war is not just about manufacturing jobs. It’s the final battle between communism and capitalism.

Forbes
Date: Dec 10, 2018
By: Kenneth RapozaSenior, Contributor

President Donald Trump (right) with China’s President Xi Jinping (left) during their bilateral meeting at the G20 Summit, on December 1, 2018 in Buenos Aires, Argentina. (AP Photo/Pablo Martinez Monsivais) ASSOCIATED PRESS

The trade war is not just about manufacturing jobs. It’s the final battle between communism and capitalism.

The number one and number two economies could not be more different. Besides the obvious differences in family life, social values and religious customs, the biggest divide is politics. Number One is a capitalist democracy. Number Two is somewhat of an economic Frankenstein, a little bit on the entrepreneurial capitalist side, with a whole lot of single-party Communism making sure everything goes according to plan.

Something’s got to give. Either China opens up more to be more like the U.S., or the U.S. closes more and—dare it be said—becomes more like China.

Since the election on Trump, the U.S. has become more like China insofar as it has increased the cost of trading with the United States. Once the freest market in the world to access, Trump’s America now comes with a price.

China, meanwhile, has responded not by opening its market more, but simply by promising to do so at some point, God only knows when. Xi Jinping retaliated against Trump’s tariffs by slapping duties on American farm goods and other items. Farm belts retaliated against Trump by voting anti-tariff Democrats into the House of Representatives in a blue wave in November. China has also been busy reducing tariffs on goods not Made in the USA, potentially setting the table for lost market share for some Americans in worst-case scenarios.    [FULL  STORY]

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