Posted by ks55 > 2018-02-05 15:53 | Report Abuse

Trade war not just limit to import and export of physical goods.
What about intellectual properties and financial instruments?
China may use its vast reserve to manipulate US bonds, treasury bills, hence influence the stability of USD exchange rate.
A volatile USD may make most countries' Central Bank move away from using USD as foreign reserve. AND will further weakening USD as settlement medium for Third Parties transaction.
China can make use of its vast domestic demand to cushion impact on lost of export to US market, just as it did in 2008/09 during US financial crisis.

What make China a superpower?
It is self-reliance from raw material, to semi-finished products, to end product, and to the home market.
China is big enough to be considered 'world by itself'.

Can US produce a telephone, or a motorcar, sourcing components from its own factories in US?
Answer is NO.

So, all in all, a trade war with China will may US citizens suffer more.
As for Malaysia, Gajah sama Gajah berjuang, Pelandok mati tengah-tengah.

Free trade is good for all countries.
Globalization of trade make sense for individual country to benefit on its strength like cheap labour, abundance of agricultural land, technical knowledge on high end manufacturing, research and development capabilities.
Surely we cannot expect Singapore to grow its own food.
Surely we cannot expect India to make its solar panel cheap.
Surely we cannot expect US to produce cheap steel.
Why not US import steel from China and export aeroplane to China?
Why can't India produce more cotton and textile in exchange for Xiomi smartphone?

Sure win-win if all countries can make full use of their potential, just like Malaysia, produce more palm oil and sell it to India.
In that case, India can concentrate on producing more cotton and sell it to China.....