China Still Smarter Than America

Lou Jiwei says China will hit soybeans first, then cars and then planes. He also says the U.S. dollar must stop being the sole reserve currency. The U.S. will have a trade deficit if it issues the reserve currency and this results in a large trade deficit with China because it is highly competitive. If China wasn't competitive, then other nations would have larger deficits with the U.S. and the total would be similarly large. I have said here before that the U.S. cannot finance the next global boom because it will require eye-popping trade deficits as the Indian economy grows to where China was a decade ago.

iFeng: 楼继伟称应先打美国大豆汽车飞机 美诺奖得主:Agree!
Lou Jiwei quipped Road, he believes that China's Ministry of Commerce is still relatively weak in response measures, "If I want to fight, I must first hit the soybeans, and then hit the car, and then hit the plane."

.. It should be emphasized that the trade deficit between China and the United States is not a matter between China and the United States. It is not a deficit between China and the United States and it is a deficit in other countries because it If it is a world currency, it will inevitably have a fiscal deficit. Under current account deficits, it will bring economic vulnerability and it will conflict with others. Who is this deficit from? It does not come from China but from other people. Because China's competitiveness is strong, it mainly comes from China. For the United States to think clearly, China must also make it clear that our two countries do not need to fight. Of course, now it is already playing. I think that the measures taken by the Ministry of Commerce of the People's Republic of China are still relatively weak and have not hit him where it hurts. If I want to be in the government, I may hit the soybeans first, then hit the car and then fly the plane. The Europeans will not be happy. We will not allow others to take advantage of it. In the end, everyone talks about the need for improvement in China. In fact, it is important that he is a businessman. Therefore, everyone can talk together after playing a dozen. Actually, China’s policy on the introduction of technology is not incapable of improvement. Our direction has been very clear. The list of national treatment plus negatives is very clear and we should follow this direction. Moreover, this system was tested in six free trade zones and then pushed to the whole country. I know he did this for mid-term elections. Didn’t we finish the mid-term elections when he hit him?
Tariffs are an appropriate response to the out of control trade deficit if ending the dollar as sole reserve currency is off the table. Whether that is a good solution or it breaks the global financial system, it gets to a good result in the end. The battle over the trade deficit also should be understood as a domestic political battle between Washington and Wall Street on one side, and Main Street and manufacturing on the other. Trump is extremely hated in part because he is the first Main Street power in Washington in at least 30 years. He is threatening to blow up Wall Street and Washington's world.

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