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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (21104)8/12/2007 8:33:51 AM
From: carranza2  Read Replies (1) | Respond to of 218083
 
China ex-factory price is 1.00, USA retail price is 5.00, and so (i) adding 27.5% duty to the 1.00 will do nothing to decrease China export........dropping USD to RMB by 100% will do nothing to decrease China export.

Don't know about that.

I think it depends on the particular item. If the spread between ex-factory and USA retail is a lot less than 4.00 wide, then a definite effect on Chinese exports.

As in all of life, the usual answer is .....it depends.

I don't see the Chinese going nuclear. I see some sort of accommodation taking place, one all sides can live with. The repercussions are too significant, the unintended consequences potentially disastrous.

On another subject, a long discussion on precious metals you may find interesting:

safehaven.com