Economics of America/European dependency on China

 Economics of American/European dependency on China.


The origin and consequences of COVID-19.

Let us assume for a moment that the new inquiry ordered by US President Biden, this time not only to use normal, scientific, diplomatic Channels but also to include intelligence sources to conclude one way or the other that the Covid virus is laboratory made and not a natural occurrence as the Chinese wish us to believe. Was it released accidentally or intentionally spread around the world? 

If the inquiry concludes that it was accidentally released, during the Chinese work on biological warfare weapons, then should China be held responsible for the misery it inflicted the world over?

What next then. Are the U.S., Europe and the rest of the world going to end their relationship with China? Will they claim compensation? Will they trade less and less? 

The answer is no!

The rest of the world does not matter, it is US & Europe and their trade relations with China that will matter the most. That trade is a trillion dollar trade and it is unlikely to be dumped. The United States and Europe are overly dependent on cheap consumer goods and intermediate industrial goods produced in China. There is virtually nothing I buy in North America that is not made in China or that does not have Chinese parts. Moreover the price makes the difference, even though the quality is bad, but for the moment this is not the decisive factor.

Furthermore, the stock market has taken off since China made products appeared at the end of the 1990s at the behest of President Clinton. Profits drove it to new heights hence even if America gets mad at the Chinese for inflicting 600,000 dead and 35 million sickened with 2 trillion dollar economic losses, still the Stock Market will prevent any major shift in trade relations. The stock market turmoil will affect everyone's pocket, so it will remain intact with profit as a reason. It will be more than a trillion dollar FDI elsewhere in Asia with similar wage structure to build the industrial capacity as an alternative to China, which the head honchos in Washington’s political circles and the Stock Market will oppose. Hence, what next?

Even if the new investigation reveals that China is behind COVID-19, nothing will happen. Some diplomatic or maybe a political slap on China, but business will go on as usual. That will encourage China to be more belligerent and continue its quest for a super weapon.... It's a tragedy, all based on the economy. 

It is a pity that this aspect has been ignored by mainstream media in the US and Europe.

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