Chinese and Taiwanese Prosperity Should Be a Win-Win for America [Part 2] Dear Daily Prophecy Reader, If you missed part 1 of this Prophecy, click here to catch up. As I was saying yesterday, this could be done relatively easily, in a way that would not even require a negotiation with China or raise Chinese hackles about the US interfering in China’s “internal affairs.” Make Taiwan a free trade zone for US imports. Declare that any goods transiting Taiwan, even if made on the mainland, may enter the US duty free. For those concerned — as only economic illiterates can be — about a flood of cheap goods from China, the US could make clear that imported goods must be off-loaded and re-loaded in Taiwan. This would serve not only as a boost to the Taiwanese economy, but also as modest tariff on mainland exports. This is a good thing for multiple reasons… #1 Futurist in America Unleashes Stunning Tech Prediction The Reality of it All Overnight, this would create a huge incentive for China to amicably extend the status quo on Taiwan —as it has for 70 years its claim to sovereignty — while refraining from military action. Free passage for exports to the US could be worth hundreds of billions to the Chinese. Even pre-Trump, US tariffs on Chinese imports averaged about 3.5%, or $35 billion on traffic close to $500 billion. Under Trump tariffs on many good are as high as 15% and in some cases higher, even 25%. In a duty-free environment, trade could reach into the trillions. To avoid triggering nationalist resentments from the Chinese, the US need never to state the obvious — that this deal is contingent on the Communists leaving Taiwan alone. Nor should we expect the Communists to cease fulminating about the island. Promises to retake Taiwan are a staple of Chinese politicking and so far, have been about as predictive of reality as most political promises. The Communists can fulminate forever, as long as they don’t launch an invasion. In retrospect, this is what we should have done with Hong Kong in 1997 when the Brits ceded control to the PRC. The benefit to Chinese — businesses in the entrepreneurial regions around Hong Kong — the first to take advantage of Deng’s loosening of the economy would have given the US great leverage to demand that China abide by the Fundamental Law, guaranteeing Hong Kong’s autonomy. |
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