Ex-Ambassador Baucus Fears China Border Tax Retaliation

The video discusses the implications of a trade war with China under the Trump administration, focusing on the border adjustment tax and its potential global impact. It explores China's perspective on the Trump administration, highlighting opportunities and challenges in trade relations. The video also examines China's economic struggles and the potential for trade policy skirmishes. Possible trade solutions, such as an indirect Plaza Accord, are considered, along with the US focus on manufacturing and trade barriers in industries like autos and semiconductors.

What is the main concern regarding the border adjustment tax discussed in the video?

• It will increase domestic production costs.

• It might lead to retaliatory actions from other countries.

• It will decrease the value of the U.S. dollar.

• It is supported by all WTO member countries.

How did China initially perceive the Trump administration according to the video?

• As a threat to their economic growth.

• As a supporter of human rights.

• As an opportunity to negotiate a favorable deal.

• As a stable and predictable partner.

What economic strategy is mentioned as a potential response to U.S. trade policies?

• Direct currency devaluation.

• An indirect Plaza Accord.

• Reducing export subsidies.

• Increasing import tariffs.

What is one of the main challenges China faces in its economy as discussed in the video?

• Rapid inflation.

• Over-reliance on domestic consumption.

• Decelerating growth due to a maturing economy.

• Excessive foreign investment.

What industry is highlighted as having significant barriers to entry in China?

• Textiles

• Automobiles

• Agriculture

• Pharmaceuticals