The blog I chose was written by Adam Davidson and posted on New Yorker. This blog is written after the election of the 58th president of United States. It talks about the market’s tendency in the future. I found it is interesting because it made me think about how Trump as the president of America will change the Sino-Us relationship. More specific, how it will effect the trade.

Trump was elected to be the 58th president of United States, and there has been voice of supporting and against. Because of the trade between America and China and the RMB exchange rate has been issued for a series of radical remarks. Trump thinks China has been manipulating the exchange rate in many ways and he is going to increase 45% tariffs on Chinese goods. How will the Sino-US relations change in the future?

Although there might be a possibility for Trump to start trade war with China, I think it is not a bad thing in some way. First, Trump’s isolationist policies could give China an opening to expand its influence in South Asia, such as countries like Vietnam, and the Philippines . It will help those countries to align themselves closer with China.

Trump has commitment to the Americans that he will let those multinational companies located in China and Mexico get back to the United States to offer American Citizens more jobs. But certainly those large multinational companies are not willing to move back due to the reason that hire labor in US costs much high than hire labor in China or Mexico. This does not benefit the companies. And i think this policy will have a effect on the multinational companies in China because they will make less money if they move back to US.

I have think about an exaple. Apple has large factories in China and it has produced thousands and thousands of iPhone for people all around the world. Why Apple chose to build its factory in China? It is because China provides cheaper and large quantity of labour. Let’s think about if the those factories move back to US, how much would an iPhone cost plus the labour fee? It would be much high than an iPhone cost right now. Lets hope there will not be a trade war between China and America.

Word Count:390

Blog Url:

http://www.newyorker.com/business/adam-davidson/what-the-markets-can-and-cant-tell-us-about-a-trump-presidency?intcid=mod-latest

Picture sources:

http://www.globaltimes.cn/content/568168.shtml