The importance of the total north American market of 300-400 million people is declining for China. As the orient and other areas are experiencing a rise in their standards of living. The Asian market has many multiples of it population wise. When China handed out a serious financial penalty of stopping the purchase of some major agriculture products in both America and Canada.

Simply because their national was treated as being from a third rate country and taken hostage. North America found out all too quick there was nothing of a compensating nature they could do. They will never again arrest a Chinese national travelling anywhere else in the world though. That point the Chinese had to make.

Still holding her is nothing less than abject stupidity. A lot of farmers have essentially lost their businesses over it already. Crops will probably rot in the fields as a result. China has also said the loss of their market is likely permanent. The price the north American population could still pay for putting her on trial in my mind is substantial. I really think the people that are attempting to negotiate with China are essentially clueless.

When I buy from China most vendors are now aware of the excessive markups on their products here. They now sell at much higher prices direct than before as a result. They still include shipping in the price a lot but not much longer I feel.

The Chinese just upped the tariffs on what they buy from America. This means the Chinese may try to find alternative suppliers. North America has no possibility of finding alternative suppliers. Unless it wants to pay more and even that may not work. If what is needed is only produced in China.

I have been trying to find a card north America really holds in this. It is not a trade war really to start with. The only card I can find is China currently wants the north American market to remain if possible. They have no want to be a contributor to a worldwide recession either. Where America risks it.

Canada went through a substantial period in my life where our government put tariffs on many things we did not produce. It was felt by the population at large. When people think it does not substantially raise retail prices that was not our experience.

As for factories leaving China. I feel with their current drive at automation there that scenario is far less likely. They have proven that with higher labor rates you have to automate to prevent the loss of your industrial component. To nations that can provide cheaper wages. Since it also has a serious impact on workers in that country. There is a need to have the value added distributed in society properly. Pure capitalisim does not allow for that.

Many countries are increasing their population in the expectations the additional taxes will support others. Where the reality is with intense automation the problem reverses.

I went looking for a certain type of modern production machine that had an element of automation. The only company producing it today is in China. It can work 24/7 if the orders are there. It presents no employee problems. The cost is not that great in relation to what it can earn. In theory it could make me a lot of money.

This is what is required in higher wage countries. Under systems that do not really share that money. They are not the salvation of that country. Variations of it just make the rich richer.

The Chinese government owns half of all the individual manufacturing enterprises in China. If I had a company here and wanted to shift it to China. They automatically own half but put up the money to justify their ownership as it is greater than the half is worth. Their portion of the earnings goes to more development primarily. As development reaches a certain point the money flows to the population. This has been the basis of their seven times wage increase in the last 19 years. We have not done quite as well in north America except for the very rich. In that same time period.