China could cripple the US economy

by Chris Kanthan from: worldaffairs: how-china-can-cripple-us-economy/ (see below for bio)

The US-China trade talks collapsed, Trump ratcheted up the economic war against China. The US government put Huawei on the ‘hit-list’ thereby virtually stopping all US companies — hardware and software — from supplying any components to Huawei, which spends about $11 billion a year on American products. US elites are ‘putting a gun to China’s head’ to force a new deal.

However, this hubris and overconfidence ignores the fact that China has a lot of leverage over the US economy and corporations as well. Here just a few of the ways China could retaliate and even totally wreck the US economy:

Targeting Apple: Huawei is a $100 billion company, while Apple’s revenue is $265 billion and its market cap is close to $1 trillion. Virtually all of Apple’s products are assembled in China. A lot of the iPhone parts are also now designed and made in China (by Chinese companies). Finally, Apple gets 20% of its revenue — amounting to $50 billion — and 25% of its profits from Chinese consumers.

So there are numerous ways China can cripple Apple. Shutting down Apple’s factories even for a few days will crush Apple’s stocks and the entire US stock market. Shut down the factories for a month, Apple may never recover again.

Targeting US Retail Stores: The US gets 40% of all apparel, 50% of furniture, 70% of appliances, 72% of footwear, 75% of toys, 80% of shoes, 85% of travel goods and 90% of smartphones/computers/electronics from China. Go to Walmart or any other store and see how many goods are made in China. If China places an export ban for a few weeks, all the retail stores in America will have empty shelves and there will be riots all across the US.

To continue reading this go to: worldaffairs how-china-can-cripple-us

The author of this article is Chris Kanthan. He is a hi-tech professional in the San Francisco Bay Area, and is also a writer and an author, trying to raise awareness about politics, world affairs, food and health through non-partisan blog posts, often with a twist of satire.

You can check out his books — available on Amazon (Kindle & paperback), Smashwords, Apple’s iBooks etc.

All the writing in this article is copyrighted. Please contact the author Chris Kanthan at ckanthan@gmail.com if you would like to republish or use any of the materials.

Chris has been published in dozens of websites including Nation of ChangeActivist PostSOTT.netRussia Insider and others.

Average Rating

5 Star
50%
4 Star
50%
3 Star
0%
2 Star
0%
1 Star
0%

5 thoughts on “China could cripple the US economy

  1. A great report, but missing one very important aspect, and that’s the symbiotic nature of the relationship, it’s absolutely true that China could damage the US in a matter of days, but it’s the only economy still growing in the developed world and an action like this would create a month or two of deficits and that could impact heavily on jobs in China, especially given the fragile nature of recovery right now.
    I agree with the article 100%, China could, but I also trust the Chinese government is patient enough, mature enough and smart enough to know that its own survival depends on restoration of the relationship and, as we all know, they only needed to wait until the election and both parties would approach China and explain it was all “electioneering” and “just politics” can we sit down again and negotiate – hopefully, the new government will be as smart as the Chinese leadership and get back on that immediately

    1. hi Jerry, Thanks once again for a great response to post. I totally agree with you in trusting the Chinese governments’ wisdom and foresight, indeed, ‘long-sightedness’ in these matters. Here’s hoping that common-sense prevails on the other side too, not to mention in Europe, whom one assumes, follows suit to the US anyway ;>

    2. Another way of looking at this, particularly from the perspective of the unlawful detention of Meng Wanzhou, CFO of Huawei, by Canadian ‘authorities’ is this: “When the other guy’s drawn his blade, and already has your blood on it, It really is time to ‘put your game face on’ and whip your blade out pronto.. and if you don’t – you can expect the worst, and have nobody but yourself to blame” .. I don’t think China treating the US as fair and equal partners – or adversaries, is a logical thing to do. By that I mean – you can’t trust these muthas to play by any rules except the ones they make up as they go along!

    3. Another way of looking at this, particularly from the perspective of the unlawful detention of Meng Wanzhou, CFO of Huawei, by Canadian ‘authorities’ is this: “When the other guy’s drawn his blade, and already has your blood on it, It really is time to ‘put your game face on’ and whip your blade out pronto.. and if you don’t – you can expect the worst, and have nobody but yourself to blame” .. I don’t think China treating the US as fair and equal partners – or adversaries, is a logical thing to do. By that I mean – you can’t trust these muthas to play by any rules except the ones they make up as they go along!

Leave a Reply

Your email address will not be published. Required fields are marked *