In response to Economist article's premise, what I generally hear is that the issue is not about whether they adopt democracy, but whether they accept a subservient role to the U.S. The term often used here (D.C.) is "little brother." Japan and S. Korea-- which started off as a pretty brutal dictatorship and today doesn't function as a free market/liberal economy) are cited as ideals.
The funny thing is, while most people hype a coming military conflict w/China, a lot of folks here openly acknowledge that the Chinese are not interested in that. It's said that they aim to essentially secure themselves, but also depend on the U.S. that maintain much of its current role in the int'l order. The Chinese are not thought to be interested in becoming a global hegemon / world police.
Anyway, I just came here to recommend a book, The Grand Chessboard: American Primacy and Its Geostrategic Imperatives. Reading it now and find that it puts a lot of things in perspective.
 Fox Business News w/ Trump: https://youtu.be/K1qt6nQLoHI
 Chaebol: https://en.wikipedia.org/wiki/Chaebol
 Military Challenges in the Asia Pacific (AEI): https://youtu.be/hp768euAi-E
The US has now proven to be unreliable and any further deal with the US will not be considered in the long term which clearly doesn't exist. So if it's not immediately in our interest we are unlike to make any deal about anything with the US as it now. No more loyalty. No more trust. Just aggressive animals trying every chance they get to steal each others food. Yuck.
Consider NATO. The USA spends 3.6% of the world's largest GDP on military. You agreed to spend only 2% of your smaller GDP, but only 3 countries (UK, Poland, Estonia) bother to do so. Overall the EU is a slacker, with some countries spending less than 1% of their GDP. NATO is really about defending Europe, but the military budget of all of Europe is less than half of the US military budget.
Meanwhile, you are imposing your own huge tariffs on US products and flat out banning us from selling you stuff like Swiss cheese. You're even trying to get us to agree to ban making Swiss cheese in our own country, forcing us to import it from Switzerland. I'm guessing you don't see how absurd that is; you have a financial motivation to believe that your rules make sense. You've even screwed up the web, with your silly cookie warnings, and now again with some GDPR thing.
You've had a great deal, and you don't want it to end. I get that. It's understandable. The deal was made in the ruins of WWII, to our disadvantage, when Europe was in ruins. You're better now. It's time to have a fair deal for this modern world.
We make more milk than anyone needs and then we subsidize it and throw half of it out. You guys make more tanks than anyone ever needs. You subsizide it and it collects either dust or you sell it to a small town police station for crowd control.
The world really didn't need us spending more money on war. Instead we spend our money on education for example. The shortage of highly skilled individuals in the west is filled by Europe.
None of this was ever a deal. We just do our part. Do what America lacks. And investing in murder machinery just isn't something our team needed.
But that's the thing, right? We are not one team anymore. You have to admit: that is what changed. I don't have an opinion about Swiss cheese.
You certainly shouldn't rely on the USA for your protection. We had promised to protect the Ukraine. Even when you do get the promised help, as Poland did from the UK in WWII, it typically comes rather late. By the time help arrives you may be starving, homeless, raped, injured, orphaned, or widowed. Pushing that stuff out of your thoughts does not make the possibility go away.
We have long memories and don't care about money as much as Americans do. We will prefer to be proud and poor.
This goes beyond Trump. It will take 30 years to repair the trust.
And Canada is awesome.
China already is a very important trading partner for the EU, so it makes sense to look east if relationships to the west deteriorate.
Apart from practical reasons, I actually think facing off China on their extremely anti-comptetitive and protectionist behaviour is long overdue and something the EU should do as well.
This whole tariff brouhaha has created the best summer for day traders I've ever observed. Normally, market participants take all of summer off...because it's horrible. No volume, no volatility...etc. This summer has been gangbusters in the market.
As for China, In 2016, a stunning 68.0 percent of China’s overall merchandise trade surplus related to sales to the U.S. In 2017, that figure increased to 88.8 percent. Trade-surplus countries, as history shows, generally suffer more in trade wars.
Looks like Chinese stock market knows this too. Shanghai and Hang Seng down 1.5% on this news. China is the world's worst performer in first half of 2018, down 25% from january peak.
...of returns to capital, which, again, is not the whole of the economy, or guaranteed to be representative of the whole of the economy.
Still, I would suspect tariffs to generally hurt that.
I have zero love for the man, but it's clear that the US has the upper hand in this trade war and should be able to squeeze China for better deals.
Many of the announced tariffs aren't in effect, and stock (and, for that matter, other capital) markets aren't the whole of the economy.
It is tough to say how much, as demand will shift to equivelant products as the cost increases, but it's safe to say the any computer hardware will have some increase in price. Since computers are used in every industry it could cause any other low margin product to increase in price as there is no room for the company to eat the cost of the tariff.
The interesting part is that we don't know how the economy will respond to tech becoming more expensive as that is not the trend. Technology usually gets less expensive.
I'm only focusing on the tech side of things. There could be different affects in other industies.
Meanwhile, wages/salary in the USA are likely to go up a little bit, more or less compensating for any increase in costs.
We need free trade and open borders, so let this be a lesson to the Trumpers.
LOL this administration definitely does not want free trade and open borders.