• wolframhydroxide@sh.itjust.works
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    7 days ago

    Except that, if China went full cold war with the US, all they’d have to do is stop selling to the US and the entire US economy would collapse. Not to mention that economic sanctions against the US would cripple the country completely, because Trump would just immediately default on the country’s debt (as he loves to do) and, oh yeah, the entire NYSE would crater to 0 in about 5 minutes flat.

    • SailorFuzz@lemmy.world
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      7 days ago

      the scenario in which China just stops selling to the US would probably collapse China’s economy too. Think about it. Why is the national debt so high? How is it that high and yet “most prosperous nation in the world”? International investment. There’s a lot of money invested from China and other countries. Their investments are only good so long as the American economy is good. International investors can leverage American debt to them as sort of capital asset to thereby invest in other things…

      It’s a giant domino effect. When China pulls out, the American economy will likely collapse… but, then all the money people had invested and had leveraged also collapse… and so then those international investors can’t pay their debts because they have nothing to leverage it with and thus also collapse… and so on and so forth… the ripple is wide.

      • wolframhydroxide@sh.itjust.works
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        7 days ago

        But while america has been investing in making itself dependent on foreign resources, China has been investing in making other countries dependent on theirs. I think that, if it were about the math of overall risk, China has less risk from the us. There are wartime measures that can boost an economy, but they require that economy to actually have the resources necessary to function.

      • kent_eh@lemmy.ca
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        7 days ago

        the scenario in which China just stops selling to the US would probably collapse China’s economy too

        While the US may be one of their biggest single customer (representing about 16% of China’s exports), they’re far from China’s only customer.

        https://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_China

        The EU is almost the same size of market as the US, and the southeast Asian countries as a group are a larger customer than either of those.

        Cutting off the US won’t cripple China. Plus the Chinese government is very willing to play the long game if they can foresee an eventual positive outcome for themselves.

    • ExLisper@lemmy.curiana.net
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      7 days ago

      Which would suck for American citizens but dictators usually don’t really care about those. I don’t think this administration sees US public as an obstacle anymore. They survived ICE raids and Epstein backlash. Everyone just stands their ground, there were 0 resignations. They built up their gestapo real fast, National Guard fell in line and the military has no problems fallowing illegal orders. They still take it easy because they don’t really have to go full fascist dictator right now but they know nothing will stop them when they have to do it.

        • ExLisper@lemmy.curiana.net
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          7 days ago

          I’m talking about his core team. Even Hegseth and Waltz are still there. Press secretaries usually don’t last long but Leavitt is still there. Kennedy is still there. I might be missing somebody but nobody from his core team resigned. During his previous term he had 4 press secretaries and 4 Chiefs of Staff. This time no one moves despite massive fuckups and controversies.

    • BarneyPiccolo@lemmy.today
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      7 days ago

      If China stopped selling to the US, it would devastate their economy as much as ours. It’s Mutually Assured Economic Destruction.

      • wolframhydroxide@sh.itjust.works
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        7 days ago

        My only disagreement is that I think it would not be equal, not that there would not be devastation.

        Trump’s ridiculous tariffs are doing the beginning of the legwork for them.