China made 3 demands to end the trade war, only one of them is legit

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China made 3 demands to end the trade war, only one of them is legit
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China made 3 demands to end the trade war, only one of them is legit lopezlinette

One sticking point of China's in the trade war is the amount of US goods the Trump administration wants China to buy.In most cases, the US couldn't even satisfy Chinese demand for goods without messing up supply chains or changing production.

The Trump administration is asking China to buy so much US product that it could change the very nature of China's economy, transforming it from a net creditor to a net debtor.that there actually isn't much the US can sell China without disrupting trade with its partners or changing US production. Part of the problem is that there's a disconnect between what China wants and what the US has to sell. For example, the US would like to sell China more aircraft, but China isn't interested. China wants more US electronics, but the US doesn't want to sell them.

Citing data from the Federal Reserve, Peterson and Mann point out that when it comes to foods, motor vehicles, semiconductors, and aerospace, the US is at or near full-production-capacity-utilization rates. When it comes to energy and poultry, the US doesn't have enough to sell to meet China's demand.

There's nothing wrong with being an importer of capital — the US is one — but in order to maintain a current-account deficit you need liquid, plentiful assets for foreigners to buy. And China doesn't have those. Where the market cap of the S&P 500 alone is nearly 110% of US GDP, the Shanghai Composite has a market cap of 30% of China's GDP, for example.

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