April 6, 2020
How China Is Profiting Billions From the Trade War

How China Is Profiting Billions From the Trade War


For most of human history, there was one superpower
in the world, and it wasn’t the US, it was China. Now, the Chinese are vying for global domination
once again and it’s increasingly starting to look like they’ll actually succeed in
overtaking the US economy. Say what you will about President Trump, it’s
undeniable that he’s trying to push back against this, and yet his trade war is having
disastrous effects on many industries across the world, especially back home in the US. In this video, we’ll learn how the trade
war started and who’s really winning it. This video is brought to you by Dashlane. Keep all your passwords safe by registering
with the link in the description. Let’s go back to where it all started. 18 years ago, the World Trade Organization
allowed China to become a member, after tons of negotiations and some important changes
to the Chinese economy. Ironically, it was the US who advocated for
China to enter the market. The Chinese economy was one of the fastest
growing ones on Earth and the US wanted a piece of the pie. The US invested billions into the blossoming
Chinese economy, doubling their dollars invested in just 5 years. By gaining access to international capital
and the global market, China flourished. Factories sprung up that rapidly produced
goods destined for export across the world, including the US. Some Americans, however, were getting worried. You see, while Chinese companies had the benefit
of cheap labour and materials, their biggest advantage was China’s loose enforcement
of intellectual property rights. The situation became almost comical: one inventor
launched a smartphone case with a built-in selfie stick on Kickstarter, fully patented
and trademarked, but just 7 days later he found it being sold at a fraction of the price
on Chinese markets before his own campaign had even been funded. In total, counterfeit Chinese goods were costing
the American economy $600 billion every year and 87% of all the fakes were coming from
China. In comes Donald Trump, who campaigned on the
promise of taking a hard stance on China. In 2017, he launched a formal investigation
into China’s policies, which of course sparked anger and outrage in China. Xi Jinping threatened sanctions against the
US, which in hindsight was probably not the smartest way one could respond to a president
like Trump. One of Trump’s first actions was to pull
the US out of the Trans-Pacific Partnership, the comprehensive trade agreement with Asian
nations that was supposed to reduce tariffs and help free trade. With that aspect of President Obama’s legacy
out of the way, Trump began making increasingly more hostile steps. First came a US-imposed tariff in March 2018
on $3 billion worth of Chinese goods like electronic components, clothing, and scientific
equipment. China retaliated very quickly with its own
new tariffs on American goods like soybeans, gold, and cotton. This is where the trade war kicked off and
ever since, President Trump and President Xi have each been threatening and then introducing
new tariffs every few months. Sometimes it seems as if the two sides might
come to an agreement, with both sides supposedly having very productive talks, but so far it’s
been all for nothing. It looks like the trade war is here to stay,
so who’s winning it? The only number that President Trump cares
about is the trade deficit, how much more the US is importing from China than it is
exporting to it. Unfortunately, the deficit isn’t really
getting smaller; it’s no longer growing with the same pace it used to, but that’s
hardly a major victory. And yet, the cost of sustaining the trade
war is already being felt in the US. The thing about tariffs is that at the end
of the day, it’s the consumers who usually end up paying for them due to the associated
increases in price. And that’s exactly what’s happening: when
you look at the inflation in non-tariffed goods versus the inflation in the products
that are getting hit by tariffs, you’ll see a pretty stark divergence. Another big source of damage was falling direct
investment: in comparison to Americans, who are still pouring as much money into China
as always, the Chinese money tap has been thoroughly closed, with most of that money
instead flowing to Europe and the rest of Asia. So we definitely can’t say that American
consumers are winning, at least not on the short term. There is however, a somewhat surprising winner
in all of this, and it is Vietnam. Ever since the first wave of tariffs was announced,
the Vietnamese trade deficit with America has been growing faster and faster. It seems that a lot of Chinese businesses
are realizing that they can just outsource production to Vietnam and call it business
as usual. Vietnam is benefiting so much, that Trump
is already considering putting tariffs on them as well. In the end, it seems as if no one is safe
from the watchful eyes of tariff man. It is possible, however, for you to be safe
from online hackers by signing up for Dashlane. With Dashlane, you won’t have to remember
complicated passwords for every single account you have online; instead, you can let Dashlane
generate and save all your passwords for you across all your devices and, to top things
off, it also protects you with a VPN service. Dashlane is a great way to stay safe online,
and just so you can see what I’m talking about, you can get a free trial of Dashlane
if you register using the link in the description. Then, if you like it, and I’m sure you will,
the first 200 of you will get 10% off their premium service if you use the code ‘businesscasual’. In any case, thank you for watching. Make sure to subscribe and to follow me on
Instagram, where you can find teasers for my future videos. We’ll see each other again in two weeks,
and until then: stay smart.

100 thoughts on “How China Is Profiting Billions From the Trade War

  1. US and West used china for cheap labor and pollute the environment etc.. Business is a two way street. US and China both benefited etc… Western media always oh china is the only one who benefited from this trade etc…

  2. Anyone who manufactures illegal drugs is winning,guaranteed money and protected by laws that would put them out of business if changed,prohibition increased crime a hundred years ago and is doing the same now but to legalize a drug that works could destroy an industry that is fake,big pharmaceutical companies know people will never buy their product again,we deny people a product that works to protect a product that doesn't,the generation of alcoholics who want to decide what a person is allowed to use needs to die for any progress.

  3. This is a bunch of false informationall America's got to do is pull their company's out and China will go down

  4. It is not China want to global domination, 1850 China have 35 % of world gdp, after the East Indian company ship opioid and opioid war, the percentage shrink to 3 %. It very odd this happen because China consist a lot of people and many good farm and natural resources. So for China to have big percentage of world gdp is not something strange. USA think it is China “stealing” us is basically none sense.

  5. Make stuff in your own country. No such “copywrite” issues. Only part of the story is Trade Deficit issue, the bigger picture is Tech Wars

  6. No one is because we are all being destroyed and the planet beyond words. ☀️☝️ because you are all STUPID!

  7. In the first place the US and the rest of the world allowed a communist country China into the WTO. Why? Make money. The world at large esp the US and its allies made trillions by investing manufacturing in China while teaching the Chinese and how to produce a cheap goods like Nike and selling it around the world for multiple net profits for decades. Today only the US is blaming the Chinese for stealing their IPs instead of tech transfer for the Chinese to make cheap goods at a fraction of what the US back home can produce. The rest is history for the US, today they're unable to re-invent themselves as they've been too reliant on Chinese goods which is why tariffs is imposed. Who's the sore loser?

  8. No, it was alkebulan meaning the land of the black. Before China, Africa built civilizations and ruled the earth. You are very ignorant of world history. Learn more about the moors who civilized Europe. Your ignorance is not bliss!

  9. Yang and UBI are needed to manage China and Russia. Otherwise, America is fucked by choice and stupidity and ignorance.

  10. How come one source saying China is under threat in trade war while your source saying it is in profits/benefits.Better you start another war with opposite source and come into one conclusion.

  11. When you spend $99 buying something from Home Depot , and Home Depot paid $10 from trading company, and trading company paid $8 from Chinese factory , and Chinese factory total cost $5.
    Home Depot profit $89
    Trading company profits $2
    Factory profit $3
    Who’s making big money ?

  12. Another lying media .China the worst economy in 27 years "beating us up. " dont u people know anything. Horray for Donald J TRUMP. Fighting for the AMERICAN people 24/7.

  13. The Chinese miracle is coming to an end. Its a one trick pony world economies are slowing meaning first class nations stop buying mfg. good from China., factories close, factories leave for other nations.

  14. U.S. WINNING BIG TIME. CHINAS ECONOMY ABOUT TO COLLAPSE. MOST OF WHAT THEY HAVE GAINED THEY STOLE FROM THE U.S. THE LORD WILL REPAY IN KIND !!!

  15. If China were really winning, why is China so desperately wanting an end to the trade war ?

    Can you explain that ?

    The trade war has worsened the tidal withdrawal of investment money from Communist China.

    The export of high tech products from Shenzhen has drastically reduced during the past year.

    So, who is actually winning !

  16. Trump is a looser grifter and incompetent businesd man. Tariffs are only being paid by the american worker. His rich cohorts are benefitting from tge grifter s tariffs.

  17. Trump can t give productive trade concessions because he s a grifter low life. We are sick of his demented. Dunning. Kreuger mind set. Duml trump.

  18. misleading bullshit.. china now patterned more inventions and research papers then any other country in the world..

  19. I think that the US shouldnt build the wall and instead we should use that money to put more tariff on china and in return mexico should get a good amount of money to get a better economy and hav a safe place call home in america( this might help america because than the more the people the more the economy). But for the drug issue in the border, I would recommend build/making something that scans the vehicle if the vehicle for drugs and hav som cops near the border for the reason that if any of them escape/go across the border illegally, than they can go and get them by car.

  20. Americans are fools they invest in everyone but their own citizens. They help created this frankinstein, call china and now cannot put the monster back in the box.

  21. since trade war is going, on aliexpress and on alibaba everything cheaper and many things coming with free ship

    so seemingly this trade war good for me the little customer

  22. Love BC and want to see videos before they go live?
    Follow us on IG! (@BusinessCasual.io) 👉https://www.instagram.com/businesscasual.io

  23. American farmer who family are 3 and 4 general are going bankrupt or quit after Trump start a trade war with a country that we owe over a trillion dollar too ! who do you think is winner a man who can read his daily briefing XI-Jinping.

  24. America was destroyed by its own military industrial complex to spent 40 trillion usd in the last twenty years.on endless wars.

  25. Business Casual – "For Most of Human History, China was the only Superpower in the World."

    India in 1700's – "Hold my Golds and Diamonds"

  26. China's losing the trade war….worst year in 2019 in what? 30 years? If they don't get a deal with Trump, they'll continue to lose, and Trump will do to China what it's ding to Iran…squeeze the life out of them.

  27. Who, in China, started to make and undercut sales of the famous and much veneered monocolor trump ties?  That might be the real reason for the start of the infamous trade war.

  28. America does not know that more than 1500 yrs ago, the Chinese have very advanced science and technology which is documented in a monumental classic called "Encyclopedia of Chinese Science and Technology" edited by Jospeh Needham, a professor in Cambridge. It is over 24 volumes and is bigger than the Britannia Encyclopedia and American encyclopaedia. You can find many discoveries that were made by Chinese hundreds of years ago. So the Chinese are not stealing technology, they are reclaiming their position. American companies were not forced to give up their technologies at the point of a gun, they agreed to a quid pro quo – let us have your technology and you can have our huge, huge market and cheap labour with NO rights. The prospect of making huge sums of money utilising slave labour was too much for Americans to resist. Hence they agreed with their eyes open. If they didn't agree to the terms, they are free to leave. The big problem is that the Chinese are very, very smart and hard working. Hence they can duplicate what the Americans did, but eventually improved on the items. Every country that is developing did the same, Japan, Taiwan, HongKong, Singapore etc. China just did it very, very much better and smarter. Americans just cannot compete. That is the crux of the matter. America just cannot compete.

  29. LOL many months later …. phase 1 deal. Back to square 1.

    Btw Chinese firms have diversified world wide more than 15 years ago.

  30. The tariffs are just another way of Trump increasing taxes of the American people and businesses, without calling it "taxes". They are the ones paying; China pays nothing

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