Investment patterns are shifting in response to America’s new assertiveness

[urvile]

An interesting article form the Asian Times about how Trumps sanctions have provided opportunity for Japenese and German car manufacturers to expand into the lucrative Chinese market.

The Chinese have also picked up where the Europeans and the US left on in regards to supporting the export of Iranian oil. They are also supporting Turkey along with Qatar. The Chinese are simply to big to mess with.

They are openly telling the Donald to go and fuck himself.

Now all they have to do is sit back and watch the trump administration implode. Which it seems to be doing quite nicely.

"Germany’s big three automakers announced groundbreaking joint ventures with Chinese firms as well as major expansion plans. Siemens, Germany’s top capital goods provider, and chemical giant BASF also announced major projects in China, while BMW warned that the Trump tariffs might cause it to shift capacity from its South Carolina plants to China. "*

"Toyota announced plans to increase Chinese capacity by 20% and Nissan slated a $900 million investment to raise capacity by 30%. Japan’s decision to expand into the Chinese market is an important gauge of America’s isolation. "

http://www.atimes.com/article/europe-japan-china-and-russia-line-up-against-us/

**A caveat the Asian Times is Asia centric so you might not like it very much. It is however accurate when it comes to Asia.

*I just remembered reading a quote from some trump trade official when China announced their latest round of proposed sanctions. Saying something like the EU is on our side now. Australia was mentioned also. ROFLMAO.

 

[thilanliyan]

Errrr...winning?

 

[Engineer]

Trade wars are easy....

MAGA!

 

[speeder009]

So how does this affect sales in US? I mean we have had the easiest credit the history of America where people are paying full price MSRP with 7 year loans I mean a toyota corolla is over 25k out the door

Sent from my SM-N950U using Tapatalk

 

[Victorian Gray]

The US just placed a biggish tariff on pipe from Canada. Apparently we sell the US a fair bit. It seems the only company that's affected, though, is a Canadian subsidiary of an American company.

 

[urvile]

The US just placed a biggish tariff on pipe from Canada. Apparently we sell the US a fair bit. It seems the only company that's affected, though, is a Canadian subsidiary of an American company.

Yep. Strongman Trump's trade war was always going to backfire on him and the US. China has far to much power and influence*. Trump has successfully turned some of the world's strongest economies against the US. No CEO is going to ruin their own multi-national corporation and no government is going to ruin their economy because Donald Trump is an incompetent fool.

I cannot believe how gullible Trump support base actually is and they will never admit it. Even when the whole house of cards comes crashing down.

*As the article states. China is openly doing business with Iran. That's how much the Chinese fear Donald Trump's America.

 

[UNCjigga]

This is what happens when Trump says "I need someone tough on China" and Kushner goes out and Google's "tough on China" and finds a book by Peter Navarro on Amazon, and decides "let's hire him to run America's trade policy!" Seriously, that's how it happened.

Nevermind that Navarro is a hack and has no real experience and no sane economist agrees with any of his positions.

 

[Fenixgoon]

assertiveness....or stupidity?

 

[paperfist]

How many Chinese people buy luxury cars?

And how long till the Chinese copy them?

 

[urvile]

So how does this affect sales in US? I mean we have had the easiest credit the history of America where people are paying full price MSRP with 7 year loans I mean a toyota corolla is over 25k out the door

Sent from my SM-N950U using Tapatalk

How many Chinese people buy luxury cars?

And how long till the Chinese copy them?

Did you guys miss this part?

"Germany’s big three automakers announced groundbreaking joint ventures with Chinese firms as well as major expansion plans. Siemens, Germany’s top capital goods provider, and chemical giant BASF also announced major projects in China, while BMW warned that the Trump tariffs might cause it to shift capacity from its South Carolina plants to China. "

More US jobs being off shored due to the Trump administrations incompetence. How gullible are Trump supporters? Also if you read the article instead of having a knee jerk reaction and posting. You would know that China is the worlds fastest growing car market. That's why those companies are investing there.

You also seem to be ignoring the fact that China is doing business with Iran and Trump isn't doing anything about it. I guess he is to busy trying to avoid prison at the moment.

 

[MooseNSquirrel]

And just when the Chinese finally have the money to buy American goods we do this.

 

[paperfist]

Did you guys miss this part?

"Germany’s big three automakers announced groundbreaking joint ventures with Chinese firms as well as major expansion plans. Siemens, Germany’s top capital goods provider, and chemical giant BASF also announced major projects in China, while BMW warned that the Trump tariffs might cause it to shift capacity from its South Carolina plants to China. "

More US jobs being off shored due to the Trump administrations incompetence. How gullible are Trump supporters? Also if you read the article instead of having a knee jerk reaction and posting. You would know that China is the worlds fastest growing car market. That's why those companies are investing there.

You also seem to be ignoring the fact that China is doing business with Iran and Trump isn't doing anything about it. I guess he is to busy trying to avoid prison at the moment.

I'm no expert, but companies bluff, Trump bluffs. BMW is going to build a factory in China overnight? The Chinese are going to provide labor up to the standards of German products? I wouldn't hit the panic button right away.

Trump pulled out of the Iranian deal, but if I'm not mistaken the other countries involved did not? Why aren't they doing anything? Give Trump time to respond unless he ends up in jail.

 

[senseamp]

I'm no expert, but companies bluff, Trump bluffs. BMW is going to build a factory in China overnight? The Chinese are going to provide labor up to the standards of German products?

Surely if bottom of the education barrel South Carolina can provide labor up to German standards, so can China. If BMW has to pay tariffs to the US in order to bring parts and materials to build cars into the US, and then has to pay tariffs to China to bring those cars there, of course it would build a factory in China instead, and faster than you think. Otherwise their China sales would collapse anyways if they pay something like 30% on combined US and Chinese tariffs when their competitors don't, which wouldn't really help their US workers much.

 

[alien42]

Trade wars are easy....

MCGA!

ftfy

 

[darkswordsman17]

How many Chinese people buy luxury cars?

And how long till the Chinese copy them?

I think they're already the 2nd largest market and might already be the largest market for a lot of luxury brands these days.

They already are, but they're doing so via direct collaborations with most of those companies. China used to full on mandate that companies selling a certain number of vehicles had to partner with Chinese companies and basically teach them modern automotive production. And I believe they also mandated that a certain percentage of cars that a brand sells must be assembled in China.

They also imposed fairly steep tariffs on imported cars (like 25%?), which could be bypassed if they were produced/assembled in China (which is why a lot of companies were already pivoting there).

I'm no expert, but companies bluff, Trump bluffs. BMW is going to build a factory in China overnight? The Chinese are going to provide labor up to the standards of German products? I wouldn't hit the panic button right away.

Trump pulled out of the Iranian deal, but if I'm not mistaken the other countries involved did not? Why aren't they doing anything? Give Trump time to respond unless he ends up in jail.

I think several of them already do, or its part of deals with the Chinese companies (where the companies setup the process in the Chinese companies' facility, and then its made by Chinese workers). Buick and Cadillac already do I believe. Not sure how much of Volvo's production is there (Geely owns Volvo). Likewise not sure where Land Rover and Jaguar's production is.

Tesla is going to build a factory there. Ford is moving the production of the Fusion and Focus to China. These aren't bluffs, these companies are already pivoting towards there (many started even before Turmp). And that will likely accelerate as cars become more like other electronics.

They already do that. You know the iPhone is produced in China, right? You also know that Mercedes builds vehicles in Alabama and Georgia, right? All it takes is properly setup assembly line and a company willing to put in the effort and cost to ensure quality. China simply has the numbers game even (meaning, they have an abundance of workers, so they're just plain going to have more workers capable of that, since education and modern manufacturing makes it possible to produce just about anywhere). In many areas, China actually likely has a leg up due to the number of workers that do electronics and other systems that are becoming more and more common and complex on cars.

Er, isn't that kinda what the deal was, lessening sanctions so Iran could openly deal internationally again? So that would effectively be working against the deal, meaning it wouldn't make sense for those still adhering to it to do that as it would undermine/nullify the deal. The point is, since Turmp pulled us out you'd think he'd be making a big stink about China dealing with Iran, but he's not.

 

[urvile]

I'm no expert, but companies bluff, Trump bluffs. BMW is going to build a factory in China overnight? The Chinese are going to provide labor up to the standards of German products? I wouldn't hit the panic button right away.

Trump pulled out of the Iranian deal, but if I'm not mistaken the other countries involved did not? Why aren't they doing anything? Give Trump time to respond unless he ends up in jail.

It is kind of ridiculous saying things like how many people in China will buy luxury cars. It's the world's second largest economy. It's not some third world shithole.

 

[urvile]

As China and India (along way behind China) rise. Where does that leave the US? Especially under the leadership of a protectionist like trump? The fact is the world is once again pivoting towards Asia. China has the power and influence to rebuff Trump's tariffs. So where does that leave the US? They are either part of the global order of trade or they are trying to exist in a bygone era which trump supporters seem to think is relevant.

EDIT: If you think that a combined population of 2 billion+ people is not eventually going to have a say in regards to products purchased/consumerism and the companies that make profit producing those products. You are living in an alternate version of reality.

 

[brandonbull]

Did you guys miss this part?

"Germany’s big three automakers announced groundbreaking joint ventures with Chinese firms as well as major expansion plans. Siemens, Germany’s top capital goods provider, and chemical giant BASF also announced major projects in China, while BMW warned that the Trump tariffs might cause it to shift capacity from its South Carolina plants to China. "

More US jobs being off shored due to the Trump administrations incompetence. How gullible are Trump supporters? Also if you read the article instead of having a knee jerk reaction and posting. You would know that China is the worlds fastest growing car market. That's why those companies are investing there.

You also seem to be ignoring the fact that China is doing business with Iran and Trump isn't doing anything about it. I guess he is to busy trying to avoid prison at the moment.

So when we need a leader to have the focus on important matters, we have deal with the Dimocrats' need for peach mint ice cream. I guess, directly or indirectly, Dimocrats love to support Russia, China, and Iran.