POTUS is playing 4D chess against CHINA, and he is WINNING BIGLY
The trade war represents a perfect opportunity for Australia to move away from its dependence on China and start thinking more globally, according to a former economic adviser to US president George W. Bush.
Pippa Malmgren believes Australia should start looking to areas such as Latin America as China begins to price itself out of the market.
"Mexico is the new China," she told The Australian Financial Review last week.
"Mexico's wages are 20 to 40 per cent cheaper but their quality control is American-standard. Australia has always linked itself to China, and China alone, but the whole rest of the world is building and making stuff now – why isn't Australia doing more business in Mexico?
"It made sense [to invest in China] when they were achieving this extraordinary competitiveness, but that ended a while ago."
Dr Malmgren, who was in Australia as part of AMP's Amplify festival, now heads commercial drone business H Robotics.
She said China's rapid growth had seen it become less competitive in the global landscape.
"I'm a manufacturer and I can make electronics in the UK as cheaply as in China but with much better quality control," she said.
"They have so lost their competitive edge, their quality control isn't good enough and their costs have gone through the roof."
"China's threatened to restrict the flow of refined rare earths metals and there's loads of rare earths all over the world but they're useless unless they're refined and we moved all the refining to China because it was so environmentally toxic we didn't want it in the west," she said.
"So suddenly, within weeks of this announcement, you see Lynas building the first rare earths refinery in the US in decades in Texas. So I suspect what we'll see is the rebuilding of the supply chains in the West now, and it's happening at a moment in history when China has priced itself out of the market and they're not very competitive anyway."
https://www.afr.com/news/economy/why-mexico-is-the-new-china-20190605-p51us3
China and Canada fall away as Mexico becomes the US’ biggest trading partner
Mexico is benefiting from ongoing US-China trade war, after overtaking Canada and China to become the US’ biggest trading partner in January and February
https://www.scmp.com/economy/global-economy/article/3007832/china-and-canada-fall-away-mexico-becomes-us-biggest-trading
Do you see what POTUS is doing?
He want to make Mexico great again.
Because only if MEXICO is free, immigrants flow will stop.
He want to cure Mexico.
Those are real BOOMS.
He is releasing hostages.
Mexico is HOSTAGE to CHINA, CARTELS.
You can not stop flow of migrants only with wall.
You have to destroy whole system.
That is the main point.
4D CHESS.