US China Trade War Explained -Who Needs Who?

look there's a lot of different kind of Wars that take place around the world some of them end up costing lives but the one we're gonna talk about today is a trade war this doesn't cost your life but this could end up costing your job and your small business and that is the us-china trade war that is taking place now having said this in this video we're gonna go a different angle we're gonna talk about seven reasons why I believe this is taking place we're going to talk about what Donald Trump's motivation is behind this and who needs to and a lot of other factors but the one thing that we are going to talk about is a vision that the leaders of China unveiled in 2015 to their people talking about how China will one day be the most powerful economic Empire in the world by 2025 where their currency the yuan will be more powerful than the US dollar and a few other strategies that they have in place in the five ways of making that become a reality so those are the things we're gonna talk about in today's video [Music] so before we get right into let's first talk about the war tariffs what it means and why countries put a tariff on other countries to import their products in so first a tariff is a tax for instance you bring your products from China to us I put a 25% tariff on this product so if you bring 100 billion dollars you can have to pay another 25 billion dollars on top of that hundred billion dollars that's the terror of this is why you'll notice a lot of times where when when people come here from Europe they'll look at a Camaro and they say oh my gosh that's such a luxury car it's an exotic car look at that but Americans look at Cameron Alexis at American buy for $20,000 but Europeans don't pay $28,000 it may pay $40,000 for it just like when Americans go to Europe and they say cab drivers driving on your Mercedes cops have Mercedes what is this all about because what a Camaro is in u.s. is exactly what a Mercedes is in Germany right so part of tariffs is to protect the businesses in your country so the business flows through your job creators not somebody else's but you're willing to allow them to come in and compete so that's a tariff now trade deficit what is a trade deficit this is where a big part of this war started taking place I'm expecting what a trade deficit is here's US trade deficit US imports three point one trillion dollars and meaning countries around the world want to do business in America and America allows them to come in last year three point one trillion dollars now u.s. gives other countries only 2.5 trillion dollars so three point one coming in but only two point five going on I think about this u.s. there's only 330 million people around the world the world has another 6.8 billion but there's the same amount business being in u.s. then out because everybody wants to be in America so that creates a six hundred billion dollar deficit now added this three point one trillion dollars that comes in 539 is China which is seventeen point three percent but out of our two point five trillion dollars that goes out only 120 billion is China which is four point eight percent meaning China has given us less than we are given them China is making more because we're allowing them to compete on market way more than we are doing in America somebody may say what's not like they're not allowing you they just don't have a need for you there and you would like them to come here because of cheap labor and all this other stuff let me continue the total deficit again 621 billion but out of the 621 419 is China alone which is 67 percent of the deficit 67 percent of the deficit so President Trump is sitting there saying well wait a minute wait a minute why are we giving so much money and why are we not getting anything for this why are we not doing it in America why are we creating jobs over there why are we not keeping this to ourselves why are we helping their economy aren't they trying to compete with us aren't they coming up from like nobody to now number seven number eight number five number four number three number two they're wanting to compete with America what is going on over here no no no no let's find out what we produce well we export grain wheat corn soy bean meat pork poultry mechanical parts like chips different kinds of things China exports electronic part wooden furniture aluminium car parts fashion accessories like the handbags seafood that's what we're looking at okay so that's what we explored how come we're not doing more why are we giving him so much money why are they doing so well we're helping them are we helping them become closer to us I don't know why this is taking place so you know what are the reasons for this trade war why are we doing this what's the purpose beyond here's what you got to realize anytime you're dealing with politics you're dealing with power motivation for business owners is money and freedom and financial freedom and control leave me alone but when it comes on to politics power is key then it's economy then it's politics which is ideology China is trying to say our ideology works because we have the kinds of people that follow what we tell them we are leaders we tell them what to do and they do it America is weak leaders because their people always tell them what to do you know the voters always tell them what to do and you always know what America is doing America matter of fact everyone knows they're bad news because that freedom of speech I'm gonna have freedom of press China we know everything America is doing America has no clue what we're doing we are more powerful and America is trying to say hey people are better if they have a freedom of speech let Americans speak let us have freedom of press you know we believe we have a better impact there's a bit of an ideology going on going on there with communism in capitalism then have obviously competition everybody's competing you got money you got market you got control now all that being said and done what's president Trump's motivation some people are saying why did he all of a sudden start picking on China it's not a new thing in 2014 when President Trump wasn't President Trump he was Donald Trump aka Apprentice you're fired here's what he tweeted in May of 2014 remember China is not a friend of the United States look at how many likes this tweet got and it was only retweeted 345 times you know what that means nobody was really paying attention to what he was saying about politics back then but this China thing is not a new thing with President Trump he's been thinking about this for a while so now what is he wanting to do what's his motivation behind this what is he doing is it the fact that he wants to keep manufacturing jobs in u.s. is that what it is is it the fact that he wants to reduce the us-china trade deficit maybe he wants to 419 to goal or is it the fact that he still wants to keep us as the dominant power doesn't want to give anybody else a shot maybe it's the fact that he's trying to get us out of debt because you know u.s. owes China 1.1 three trillion dollars of debt and it used to be 1.3 trillion in 2013 and it's 1.1 3 trillion maybe this is a way for him to learn to get out of this debt because he's used to eliminating there these 200 billion dollars to a bank and this is maybe a comfort zone it's like I'm okay with this I can handle things like this maybe it's him bullying the bully a lot of people are afraid of China a lot of people are saying well I'm not gonna say anything because we need them we need them we need them there's only one country that maybe doesn't meet China that maybe China needs more than they need them and it's like well my position I want to get out and say something about this and I'm gonna bully the bully maybe that's what it is or maybe it is the vision that China launched back in 2015 to their people called made in China 2025 and here's what made in China 2025 was some may say this is brilliant some may say it's manipulative but all I can tell you is this 100% benefits China more than anybody else so part one of the five-point game plan is setting explicit targets here's what that means Chinese government is pressuring private companies to adjust their vision to China's 2025 visions so saying here's what we're doing we would like you to do anything you do with your company to help us reach this vision as a whole which some may say okay that's cool that's a visionary somebody else why are you pressuring us you know why are you making this duel up maybe we want to do something else but that's what China's doing number two providing subsidies 300 billion dollar investments this is going to be very low interest rate loans whatever they can do to help these businesses grow we're talking 300 billion dollars of China's going to lend give invest into private companies right number three its foreign investment and acquisitions government is encouraging companies to invest into semiconductor firms to gain access to their technology or what do you mean well we want you to go buy an investment to semiconductor companies in u.s. so we find out exactly what they're doing with their technology and you know how much they put in twenty sixteen forty five billion dollars into US companies and they investment like oh this is what they do let's do this in China oh my gosh this is what they do let's do this in China that's a turtle for number four is mobilizing state backed companies what does that mean state backed meaning companies that are owned by the government this is kind of like you know CIA investing into Facebook I mean imagine if that happened to America ci is wanting Facebook to do better because they get all the data because that's why your information is that's one of their game plans and last but not least point number five which is probably the one that's turning the most people EU is not happy about this Central America is not happy about this Brazil's not happy about this Middle East has not happened a lot of people are not happy about this here's what it is number five forced transfer agreement here's what this means if you choose to do business in China they are forcing you to share all your trade secrets with them all your BOINC you want to go to China you want to do business out there guess what boink share all your trade secrets with us then we're gonna go design our boring that's what China is doing and this right here had a lot of people concerned a lot of people saying wait a minute that's not fair you know you can't come and do business in our country we don't ask you to do all this stuff you can come to business here but if I want to go do business in China have to share with you all my trade secrets yes that's the game plan why are you doing this here's why u.s. is good at you know ideas and innovation us is good at free market competition they don't mind competition they want new companies coming out they're competing with the rest of them u.s. is good at technology China on the other end they're good at cheap labor very cheap labor you hear a lot of these videos and these stories about what it takes and how hard kids work and how much money they're making per day but they're good at cheap labor and a lot of people wait a minute I can get somebody worked with me for $5.00 a day here you go they're good at copying you here a lot of times here's Nike but you got another one made and you know China's version that says nicey or whatever it's called but it's a similar kind of a whoosh they're very good at copying products right but they're also very good at manufacture so it's kind of like they're good at copying but they're good at manufacture so maybe we need to why are you doing this they find out about a product they unpack the product then they make the same exact product for a fifth of the price we're not helping ourselves what is going on over here right so so us knows this has taken place and this is why it's a leading us to who is this hurting the most a lot of people are concerned I think this is hurting a lot of people well who's reverting to the most who who's taking the biggest hit so we were saying other foreign relationships some of these tariffs that Trump impose on other countries immediately Brazil cannot wait a minute that tariff you put on China is hurting us then Trump came out and said okay this tariff excludes Brazil then results with their tariff down you know u.s. put a tariff on a China about certain products Canada makes cookie Max and wait a minute this is hurting us we are threatening to put an impulse to us on such-and-such product that you import to us then Trump's like Oh okay this tariff is only China right so a part of this is also hurting relationships with other countries number two it's hurting the small business owner now a lot of these small business owners are relying on buying a product for a certain price and selling it for retail to make money Oh in a minute I'm having to pay more I'm having to spend more I'm not making the same kind of profits number three farmers in the u.s. just between January to March two months three months farmers in us lost eleven point eight billion dollars in three months farmers by the way and I believe it's Illinois Wisconsin and Indiana highest rate of bankruptcies in the last decade in those areas they are taking a big hit and obviously consumers are also also taking a bacon and you know you hear the whole thing Wow you know it's short-term pain for long-term gain this is why we're doing this because we're gonna have a long-term gain no one really knows this we are currently in the short-term pain process we're not yet in the long-term gain process so having said this some of the people say wait a minute Pat you know what about the fact that you know what if China realizes that hey if you want to play this game with us don't you owe us one point one three trillion dollars you know what if China sells their debt what happens there could that affect the US economy in a massive way I mean let's face it China's got one point one three trillion dollars in t-bills tenure Treasury bills Treasury bonds and the current rate I believe is three point four percent and by the way us also owes Japan I think it's 1.07 trillion in u.s. oates Brazil 308 billion and UK 284 billion in Ireland 274 billion what do we do what if China sells to debt what if they do here's what happens if China sells the debt what happened in 2008 the massive market crash that we face in 2008 in US where the market tanked nearly 40 percent in a year I'll never forget that IAM in the financial industry I'm a Series seven financial advisor since it was a boom 38 percent clients Collin Collin Collin Collin as bad as that was it's gonna be worse if China does this and you know who affects the most if this happens China China's gonna take the biggest hit China bleep on the ones that takes the biggest hit in this why will China take the biggest hit let's remember if that happens what are they gonna do with this this is a big part of the economy 530 and 9.5 billion dollars so now you're listening to this and say well Pat who need two more twenty two more I mean us relies on the cheap labor let's face it we need them and China kind of relies on us for our US goods they need us but who needs more so here's the part that President Trump is used to if there's one thing President Trump is used to he knows negotiation and he knows the leverage this is what I mean he not he may not be the most you know likable guy out there in the world not a lot of people like this guy it's for obvious reasons so he goes after people hard core but he knows leverage what I mean by leverage he knows these guys needed I mean one time president Trump owed a billion dollars to the bank and somebody asked him and says aren't you worried that you owed the bank a billion dollars he says why should I be worried the bank should be worried I have their billion dollars they're the ones that should be worried so he realizes China should be worried they have our 1.1 we have their to 1.1 30 trillion dollars and in this entire leverage game China also has to realize their net migration rate which is how many people are moving to China how many people are moving to China is one of the lowest net migration rates in the world it's in the negative while US migration rate is the highest in the world we take more immigrants than any other country in the world it's not even close we're number one even though you hear all this stuff about immigration everybody in the world wants to come to America not everybody in the world is wanting to go to China why is that you know this whole whole thing do you hear if you go search right now forget about where I'm at go search right now China's unemployment rate and look how weird it is the last 20 years three point four percent three point five percent three point eight percent three point two percent how do we know that's accurate remember free press in u.s. there's no free press type of stuff going on in China you don't hear Democrats and Republicans going at it one of the best things for America is the fact that we have Democrats going against Republicans Republicans going against Democrats there's always this push so you can kind of sit there and say there's the truth there's the truth there's a truth or these guys are playing the games there is none of that some people say the unemployment in China is around 14% thirteen point a 14% by the way CNBC that an article saying a third of millionaires in China want only for three reasons number one is education number two is polluted cities and number three is that government has way too much control over their people so what's gonna really happen here how long is this really gonna last because when you're looking at the same well pad I don't really understand what's gonna happen here's the reality of it it's really who can hold out the longest right now really who can't afford the longest right now you know when the mortgage crisis took place and a lot of people lost a lot of things there were also a lot of people that became very wealthy afterwards you know why it's because who had the most cash and who was the most stable in this situation whoever is most stable whoever has most cash whoever needs the other person unless it's going to win here and eventually someone's gonna come out of it because what President Trump is starting to realize is he's saying wait a minute what if we make those jobs come to America what if we do manufacture new America what if what if we bring those jobs back well what if we make all that money come back here well what if we're making iPhones here and forget about what if we don't make him here how about we go to another country that doesn't offer high tariffs how about go to another place that's not offering this as expense as it is once you go to another Asian country that's out there but don't go to China because he realizes this vision that China has they want power they want domination they want to be number one and President Trump is extremely competitive and he's not okay with that happen on his turf could it happen ten twenty thirty forty fifty six years from now I don't know I can't predict the future what I can tell you is this trade war that's going on it's all about leverage and whoever has the most leverage it's probably gonna end up winning at the end and I don't know who it's going to be but for this situation as we're looking at we can tell who has the leverage so having said that if you watch this video and you're kind of worried about a possible market crash I got another video I want you to watch it's called the next market crash and eight ways to prepare for it here's a thumbnail if you haven't watched you two click on it to go watch we'll put a link below as well if you haven't subscribed to the channel please do so and if you got any thoughts or questions comment below thanks for watching everybody take care bye bye

Channel: Valuetainment

Views: 1,209,209

Rating: 4.3770871 out of 5

Keywords: Entrepreneur, Entrepreneurs, Entrepreneurship, Entrepreneur Motivation, Entrepreneur Advice, Startup Entrepreneurs, valuetainment, patrick bet david, US Trade War Explained -Who Needs Who?

Id: DxN12jzHrqI

Length: 17min 49sec (1069 seconds)

Published: Tue May 28 2019

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