Friday, May 10, 2019

Chinese Censorship Shows Trade Position

There is an article today in the Wall Street Journal (Beijing Media Urge Calm on Trade)
that shows what the Communist country really thinks about the trade negotiations it is having with the US. 

While the politicians and press on both sides of the issues speculate about how the trade talks might go, the Chinese censorship engine is telling their people to remain calm.  This article says they are reducing stories that might inflame the rhetoric, prompting stories that might lead to criticism of the central government or result in banning or restricting sales of US products in China.  We can still remember the iPhone incidents which were incredible displays of bashing or burning iPhones because Apple wouldn't cooperate with Chinese rules for data.  These were totally manufactured scenes, unless we believe that a person would destroy a $700 phone he had just purchased based solely on a principle that would not affect the average user.  Those kinds of displays cause people to change their purchasing choices and have longer term affects than the Chinese really want. 

What can we infer from this kind of restraint?  This is not going to be a long negotiation with serious consequences for both sides of the industrialized countries.  China caused the US to seek other manufacturing venues for some products (Cambodia for tennis shoes is a simple example) and that is something the Chinese would like to avoid.   

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