Charles Payne: America is winning the trade battle with China


CHARLES: FOLKS TIME TO EXPLAIN WHY AMERICA IS WINNING THE TRADE BATTLE WITH CHINA. TO DO THIS I HAVE TO CUT THROUGH THE SEMANTICS CLUTTER. I WANT TO FOCUS ON THREE WORDS AND A LOT OF FACTS. FIRST, PAYING IS, GIVING MONEY IN EXCHANGE FOR GOODS AND SERVICES. WE GOT THAT. SO WHEN GOODS ARE DECLARED ENTRY INTO THE UNITED STATES THE CBP ASSESSES DUTY. THAT IS PAID BY THE AMERICAN IMPORTER OF RECORD BEFORE THOSE GOODS ARE RELEASED. SO AMERICANS WRITE THAT CHECK. OKAY. THEN ABSORB. ABSORB TAKE IN MAKE PART OF AN EXISTENCE WHOLE, RIGHT? SO CHINA ACTUALLY IS ABSORBING THE COST OF THE TARIFFS. THEY DO IT IN MANY WAYS. ONE AMERICAN IMPORTERS ARE GETTING BETTER DEALS THAN THEY ORIGINALLY NEGOTIATED. FOR INSTANCE, THIS IS HYPOTHETICAL, IF IMPORTER PAIDS 50 BUCKS FOR LOL SURPRISE LMG DOLLS OR BOX OF 12 BASEBALLS OR REMOTE CONTROL CAR THEY MIGHT BE ABLE TO GET THE EXPORTER TO ADD ANOTHER DOLL, MORE BASEBALLS EVEN ANOTHER CAR ALL AT THE SAME PRICE. IN ADDITION CHINA LOWERING ITS CURRENCY. REMEMBER THEY LOWERED THE YOU ARE CURRENCY AGAINST THE DOLLAR, THAT ALLOWS THE AMERICAN IMPORTER TO GRAB OTHER LOL DOLL, LIKE THE WINTER DISCO AND HER LITTLE TESTER. THE ORDER IS SUBSTANTIALLY LARGER THAN AT THE SAME PRICE. THAT BRINGS US TO THE LAST WORD IN THE DISCUSSION, FUNGIBLE. THAT IS THE ABILITY OF A GOOD OR ASSET TO BE INTERCHANGED WITH ANOTHER INDIVIDUAL GOOD OR ASSET OF THE SAME TYPE. YOU SEE THE MONEY SAVED FROM ALL THESE EXTRA DOLLS AND EXTRA BASEBALLS AND EXTRA REMOTE CONTROL CARS MEANS THE IMPORTER DOES NOT HAVE TO RAISE PRICES TO MATCH THE DUTY THAT WAS PAID ON THE IMPORT BECAUSE OBVIOUSLY THEY’RE GOING TO MAKE AT LO MORE MONEY BECAUSE THEY SELL THESE EXTRA PRODUCTS. SO YOU ADD THE COST THAT IS ABSORBED THROUGH ALL THE DIFFERENT PARTS FROM THE SUPPLY CHAIN. IT REALLY EXPLAINS WHY THERE HAS BEEN VERY MUTED IMPACT FOR AMERICAN CONSUMERS. NOW LAST NIGHT, IT WAS REVEALED THAT CHINA’S INDUSTRIAL PROFITS FELL THE MOST EVER ON RECORD, ALMOST 10%. THIS ACTUALLY CONTINUE A STRING OF DECLINE. IN AUGUST IT WAS DOWN 2%. SEPTEMBER DOWN 5.3%. IN ACT DOWN ALMOST 10%. HERE IS THE BOTTOM LINE. CHINA IS ABSOLUTELY ABSORBING AND LOSING THIS TRADE BATTLE. TO PUT IT ANOTHER WAY, THIS IS JUST A PLAY ON WORDS. JOINING ME TO DISCUSS, UNIVERSITY OF MARYLAND ECONOMIST, PETER MORICI. PETER THAT IS MY TAKE ON ALL OF THIS. THIS IS WHY WHEN PEOPLE GO TO TARGET THIS WEEKEND THEY WILL NOT SEE A MASSIVE INCREASE IN PRICES BECAUSE IT HAS BEEN ABSORBED ALL THE WAY BACK TO CHINA?>>WELL BASIC TAX SHIFTING. YOU KNOW IN FRESHMAN ECONOMICS WE SHOW PEOPLE SOME PRODUCTS THE CONSUMER PAYS A TAX. FOR EXAMPLE, IF YOU PUT A TAX ON INSULIN, IT IS MADE HERE THE CONSUMER WILL PAY A LOT MORE FOR INSULIN. IF THEY PUT A TAX ON THE FOREIGN PRODUCT, THEY DEVALUE CURRENCY, THEY HAVE ROOM TO ABSORB OR RESUES PROFITS, THE PRODUCER ABSORBS IT. CHINA’S ECONOMY NOT DOING AS WELL AS IT WAS BEFORE BECAUSE IT IS SO DEPENDENT ON THE EXPORTS. A LOT OF MANUFACTURERS ARE IN TROUBLE. CHINA IS HAVING TROUBLE UNWINDING ITS CREDIT BUBBLE. MEANWHILE THE U.S. ECONOMY IS DOING FINE. LOOK AROUND. DOES IT LOOK LIKE THE U.S. ECONOMY IS DOING BADLY? INTO NO. NO INFLATION AND JOBS BEING CREATED. CHINA IS OUT OF BULLETS BUT THEY CAN HIT US WITH MUCH MORE. THERE IS A LOT OF MORE DONALD TRUMP CAN DO TO CHINA TO MAKE ITS LIFE MISERABLE. THE TRADE NEGOTIATOR COMING OUT ALMOST DAILY WE’RE VERY CLOSE TO A DEAL. IT BOOSTS STOCK MARKET, PUTS PRESSURE ON MR. TRUMP, IF THERE IS NO DEAL LET’S FACE IT THE STOCK MARKET WILL ADJUST DOWN A BIT. IT IS HIS WAY OF SAYING I’M READY TO DEAL, I’M READY TO DEAL. CHARLES: THE BLUSTER TO YOUR POINT CHANGED DRAMATICALLY LAST SIX MONTHS. SIX MONTHS WHEN THIS WHOLE THING BEGAN, CHINA CAME OUT, WE’LL FIGHT YOU BACK. NO BIG DEAL. AMERICANS ARE SAYING CHINA IS PLAYING THE LONG GAME. THEY CAN CHILL OUT FOR 100 YEARS BECAUSE THEY’RE SO WEALTHY. YOU KNOW WHAT? 100 YEARS AGO MAO WENT INTO THE MOUNTAINS WITH A BUNCH OF RAGTAG REVOLUTIONARIES AND THEY COULD DO THE SAME THING NOW. NO, THEY CAN’T. THEY WON’T GET OUT OF THESE MERCEDES-BENZ. THEY WON’T GO BACK TO BUYS SELLS. THERE IS NO WAY THEY CAN DO THAT NOW.>>I THINK THE PRESIDENCY OUGHT TO LOOK AT HONG KONG. THAT COULD HAPPEN IN SHANGHAI. CHARLES: YEAH.>>BUT THE THING IS, THERE IS NOT MUCH MORE THEY CAN DO TO US. THEY BASICALLY SCREWED DOWN OUR EXPORTS. THEY REALLY CAN’T CUT THEM DOWN MUCH FURTHER. THEY HAVE HURT FARMERS. WE HAVE BANKRUPTCIES IN THE FARM BELT AND THAT’S VERY SAD BUT THEY CAN’T DO IT A SECOND TIME. SELLING OFF THE BONDS, HECK, THEY SOLD OFF A LOT OF BONDS FROM 2014 AND 2016. A TRILLION DOLLARS WORTH. IT HAD NO IMPACT. OTHER PEOPLE BROUGHT THEM UP. RARE EARTH MINERALS TINGE. THEY TRIED THAT WITH JAPAN IN 2010. GUESS WHAT HAPPENED? JAPAN DEVELOPED ALTERNATIVE SUPPLIERS. SUPPOSE WE TREAT CHINA LIKE IRAN, CUT THEM OUT OF THE PAYMENT SYSTEM? HOW HOW DO YOU THINK CHINA WOULD FARE IF IT COULDN’T GET THEIR HANDS ON DOLLARS. WE CAN FREEZE THOSE BONDS. THEY ARE ON ACCOUNT AT FEDERAL RESERVE. IF THEY’RE TRADED WE WON’T PAY INTEREST ON THEM. SO WE CAN MAKE IT SO THEY’RE NOT NEGOTIABLE. CHARLES: I MEAN –>>I UNDERSTAND. CHARLES: IT WON’T GO THAT FAR.>>I LOOK AT THE QUILL, IT IS EMPTY. I LOOK AT TRUMP’S QUILL, HE HAS TWO DOZEN ARROWS LEFT.

48 Replies to “Charles Payne: America is winning the trade battle with China”

  1. 嘴炮强国,意淫强身。老子听共和党吹嘘贸易战胜利,听了几百次了。美国底层群众真他妈弱智,被一次次忽悠,关键是他们还真信了。
    教育的严重分化,已经把这个国家彻底割裂,迟早会爆发大屠杀。

  2. Charles. You Are So correct. My friend in China said to me, we are Chinese, we will eat mud if we have to just to survive. And I said bro, you and your slacks and press shirts are not going to eat any f**** mud. You're the softest motherfuker I've seen in my life. You're not going back to 1970s poverty no matter what.

  3. Drive them into the ground! Scorched earth! Do to them what Reagan did to the Soviets. Make them collapse economically!

    TRUMP 2020!!!! 🇺🇸🦅🛐💯%

  4. Really? I've been listening to Fox say a deal is around the corner for over a year. The only deal on the table will take us back to where we were in 2016.

  5. I FCKN LOVE YOU sir /yOUR FCKIN awesome, PLEASE DONT CHANGE/thank you for being a TRUE AMERICAN.111/WWG1WGA/111. Charles Payne, You SIR" ARE the MAN. ty.111.

  6. Fox still says we're winning! Sure. Then explain why Trump has decided to suspend tariffs on dozens of goods. Lies from Fox again.

  7. Lol we are not winning. China is and has snuck into many countries with their bribes and money and influence. Trade is just one front to fight. China has taken many avenues unfortunately. It’s just too little too late. 20 years or less and it will be a hot war with who knows everyone involved in that one.

  8. TRUMP SO CALLED ECONOMY IS GONNA TAKE A NOSE DIVE THE SAME WAY IT HAPPENED TO THE LATE SENATOR MCCAIN ON ELECTION YEAR MONTHS BEFORE THE ELECTION. WHAT HAPPENED BEFORE WILL HAPPEN AGAIN. BUT THIS TIME WHEN THE US GOES INTO ANOTHER RECESSION CHINA WILL NOT BAIL THE US OUT THIS TIME. SO IN THE END CHINA WINS

  9. Charles Payne my wife and I really enjoy your wit, humor, knowledge, HARD WORK AND POSITIVITY! GOD BLESS YOU AND YOUR FAMILY FOR GIVING US YOU!!

  10. Shifting from China to other low cost countries would not help US to win the trade battle. There will be India, Pakistan, Vietnam and other LCCs becoming like China……

  11. Holly molly!!! Did Charles really say that the Chinese are going back to their bicycles? How much does he want to see China go down to hell? I’m literally lmao!! How the heck he’s got the qualifications to host business news? Does he know if China goes down, the us will go down as well? Did he know in the 2008 financial crisis, if wasn’t China, what could we have been now? And since then China has contributed more than 30% of the glob economic increase to the world and of course China benefited from it too. Does he know how many US companies are there in China? Like if it wasn’t for the chinese market, we might have to bail GMC out again? And Boeing? And many others too? Like what exactly is that you are winning about? And did the guest really say many farmers filed bankruptcy but they can’t do it again? I’m just speechless on what kind of logic is it from the host and guest. I feel bad of this is the news we get.

  12. Most of the goods are owned and produced by american companies in China, china paying for the tariffs ? I dun believe this video, fake news !

  13. Democrats are pissed off 😡. Because, Trumps winning on the economic war. China survived on thievery. You cut off the thieves, they know nothing else. An struggle for survival. China keeps pissing money away. On that belt road trying to over power US.

  14. I wonder how much the tariff money – which does impact the cost of imported goods – has used to pay-down the national debt… it seems to have stabilized (a very little bit) at $22 trillion for a while…after Bush and Obama

  15. I love President Trump and Fox News. But this segment proves its the "states media" propaganda channel. Just brainwashing the masses.

  16. @3:29, Peter said: "But there is a lot more that Donald Trump can do to China to make its life miserable". America is great and its people are very kind!

  17. I can’t wait to see the libretard snow flakes melt down and cry like the babies they are when President Trump is re-elected in 2020!! MAGA!! 🇺🇸

  18. FOX is really Faux News. Viewers better use VPN, change location as NOT USA, UK, Canada, Australia and NZ, and you get news that MSM don't want you to know, so they can continue brainwashing you.

  19. Take the blinders off you 2 fools, a major US recession is just over the horizon. You can't freeze the bonds fool, the market would collapse with the idea that the US can't pay. Also the high paying job loss is growing, the only jobs we are creating are at the minimum wage and work participation rates are falling. Welfare rates are soaring for white Americans that don't want to work and guess what states lead- the very red ones.

  20. No winners in a trade war. The US is facing recession soon Trump is on panic mode. Keep lying to yourself and China doesn't need to make fake news videos to justify it's position.

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