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Analysis

China’s “Mandate Of Heaven” In Jeopardy

China's “Mandate Of Heaven” In Jeopardy
Front cover of Constitution of the Communist Party of China

U.S. policy through the Bush and Obama administrations was to soft-pedal questionable Chinese trade practices, pirating technology and theft of intellectual property in return for cheap manufactured goods and China’s willingness to finance trillions of dollars of U.S. government debt.

Now Trump has changed the rules of the game. He’s said lost jobs in the U.S. are not worth the cheap goods and cheap financing. He bet that China had no alternative but to keep producing those goods and keep buying our debt, even if the U.S. imposes tariffs to help create manufacturing jobs here…

To read more visit Daily Reckoning.

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