All said and done, China still controls workers and manufacturers alike. You may remember what happened to Jack Ma, the owner of Ali Baba. Workers are made to work 12-18 hours. There are no unions.
As I mentioned earlier, President-elect Trump and his cabinet is closely watching the steps taken by BRICS nations in establishing an alternative currency to the US dollars instigated by China and Russia. He said, "Quietly watching BRICS nations establishing an independent currency to reduce the dollar's current position of international currency is over". He literally threatened that he would enforce 100% tariff to all countries involved in this effort. Currently the membership of BRICS include Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the UAE with more countries expressing interest to join BRICS. It looks like he is expecting individual countries to withdraw the effort to establish alternative currency to the United States. After Trump takes over in January, the US will not get involved in any war including supporting the war in Ukraine and the tax rates are likely to be made more competitive when compared to the European Union. There will be incentives for manufacturing retained in the US to increase opportunities for the US workforce. The Israel's war in Gaza is already coming to an end and unless China initiates war with Taiwan, there will be no involvement of Americans in any war either way of funding or sending military. Even Trump is planning to provide military support through its international bases only if it is funded reasonably by the respective countries for their defense. All these efforts will have a long term impact in economic development of the US. Every country has its own benefit in mind and is likely to pursue their own national interest in mind. We will have to wait and see how the foreign policies of the US are rewritten as Trump is planning to review everything practiced now and rewrite them, if necessary. NATO contributions would be based on each countries GDP, UN contributions will be need based on supporting the foreign policies of the US, and Balance of Trade and Payment will be reviewed carefully. Wtih reduction in size of the government and growth potential of the US GDP, the next 8-10 years of effort to balance budget and reduce debt will be significant.
US President-elect Donald Trump has threatened 100 per cent tariffs on BRICS nations and allies if they support a new currency to replace the dollar in international trade. Trump demanded a commitment from BRICS countries, including new members such as Iran and the UAE, not to challenge the dollar's dominance or face losing access to the US economy. At the recent Brics summit held in Kazan, Russia, discussions centred on boosting non-dollar transactions and strengthening local currencies. Russian President Vladimir Putin accused the US of "weaponising" the dollar, calling it a "big mistake."
I wonder who is going to succeed. The largest world trader is the US and at least 2 major players China and India need the access to the US market. Will they go for alternative currency or access to the US market? We will wait and see.
Dear Viswa, A concise and realistic summary of the governing principles leading to a comfortable and confident relationship. As far as military hardware is concerned we can't put all eggs in one basket as America is known for bullying and arm twisting .As for alternate currency is concerned, it is work in progress and we have to keep the furnace simmering. The lesson we have learnt recently is buying Russian oil at a good price and the delay in supplying engines for Tejas fighter. Unpredictability of the American leadership is also to be factored in.As a give and take gesture tariff on American goods can be restructured. On the whole it is going to be a trapeze relationship marked by ups and downs but certainly India will be on the match point. Regards SLN
Dear SLN Sir, Three issues that would dominate once President-elect Trump takes over the US Government: 1) Extra-judicial attempted killing of a US citizen in the US soil. Even though India's Raw succeeded in execution of a Canadian in Canadian soil, they failed the attempt in California. I understand the US government has given evidences of the attempted killing with a list of people involved in that attempt. 2) Indian tariff on the US products - Trump said even though PM Modi is a smart man, he is having a unilateral tariff regime on the US products when the US has not implemented tariff in any of the Indian goods. This will be a major irritant in the Indo-US relationship. 3) India's participation in BRICS and its effort to have alternative currency for the US dollar - In a strategic relationship, there can't be two position, one to cooperate on industrial and defense projects while having an independent policy opposing the views of the US sanctions and its currency's dominance. This will be reviewed by the incoming new government in the US. I am not suggesting which government is right or wrong, I am just summarizing the status.
I always had this doubt. could not find a right answers. If BRIC goes for their currency. Is there a common currency or they trade in their own country current. If that is the case, then who determines that value . example : who says 1 Rs = 100 Rouble ( russian) or vice versa.
