Lecture Notes: Trade War with China

Introduction

• Ongoing trade war with China, tariffs at 145%
• Perception: Transition from small-scale to significant conflict
• Concerns about economic impact, but Trump administration remains confident

White House Position

• Trump administration's stance: China needs to make a deal, not the U.S.
• Suggestion that China's size is their only difference

Political Statements and Reactions

• Vice President JD Vance controversially refers to Chinese as "peasants"
• Outcry in China, both at official and online levels
• Chinese online platforms amplify outrage
• Chinese achievements highlighted (high-speed rail, logistics, AI, drones)

China's Retaliation

• Suspension of rare earth minerals exports to the U.S.
  • Impact on carmakers, aerospace, semiconductor industries
  • China controls 90% of these resources
• Ban on Boeing jet acquisitions and U.S. airline parts

Impact on Students and Tourism

• Potential shift of Chinese students studying elsewhere
• Travel agents steering away from U.S. cities

Cultural and Entertainment Effects

• Restrictions on Hollywood movies in China
• Impact on actors and filmmakers relying on Chinese market

Propaganda and Economic Strategies

• TikTok videos offering cheap Chinese products
• Direct-to-consumer sales pitch for luxury goods at lower prices

Personal Opinions and Market Risks

• Discussion on the economic impact and potential recession
• Debate on real versus perceived value of luxury goods
• Concerns over genuine products versus imitations

Conclusion

• Escalation of trade war could lead to significant economic risks
• Balance between consumer deals and long-term economic stability