Who Pays For Tariffs?

The Trump Administration’s tariff strategy begs the question as to who actually pays for these duties. Does the American consumer pay through higher prices and efficiency losses caused by disruptions in the global supply chain as Liberty Street Economics argues in a recent article?

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Electric Commercial Vehicles in the U.S.

Despite the trade war, JFP Holdings is building a substantial business working with ADOMANI, Inc., a California company, to source electric drive trains, neighborhood electric vehicles, trucks, delivery and passenger vans, and buses from Chinese manufacturers for sale to fleet owners in the United States. China is, by far, the global leader in the manufacture […]

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The U.S.-China Trade War Enters Uncharted Waters

In the five predictions we made for 2019 at the beginning of the year, our first and most important was that the trade war between the United States and China would be successfully resolved by June 30. U.S. President Donald Trump and China’s President Xi Jinping are scheduled to meet at the G20 Summit in […]

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Encouraging Signs in China’s Sluggish Auto Industry

China’s vehicle sales declined for the 10th month in a row in March and fell by double digits during the first three months of the year. Despite this gloomy performance, however, encouraging signs are providing hope that the worst may be over for China autos. After slowing throughout 2018, China’s economy has responded to recent […]

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The Road Ahead For China’s Automobile Industry

For the first time in memory, China’s unit vehicle sales declined in 2018, registering a 2.8 percent year over year decline.

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Listen to MTD’s New Podcast Series, “Managing The Dragon: Demystifying China”

If you have not already done so, I would encourage you to sign up for our new podcast series, Managing the Dragon: Demystifying China on iTunes or Spotify. As discussed below, we have been adding new podcasts covering topical issues in the country that you will not want to miss.

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Managing The Dragon’s 2019 Predictions

“If you are going to be a bear, be a grizzly,” my father used to tell me. That’s the way I feel about going into 2019 with my five predictions for the New Year. Four of the five are dependent to a greater or lesser degree on the trade war between the United States and […]

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Apple’s Problem: China’s Economy or Loss of Market Share?

At the end of the first day of trading in the New Year, Apple announced that it was cutting its revenue guidance. Tim Cook, Apple’s CEO, blamed a slowing Chinese economy and the impact of the trade war between the United States and China for the reduced guidance. In a letter to investors, Cook said: […]

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2018 Predictions: How Did We Do?

Despite the volatility of 2018, Managing The Dragon (MTD) fared pretty well on its predictions for the year. Of the five predictions made on January 23, four — growth in China’s exports to the United States; the pace of overseas acquisitions by Chinese companies; tensions on the Korean Peninsula and sales of New Energy Vehicles (NEVs ) — played out more or less as MTD predicted.

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The Trade War Truce — Who Benefits?

The answer might surprise you. Two of Germany’s largest car makers stand to be immediate beneficiaries of a reduction in trade tensions between the United States and China. Currently, the United States exports more cars to China than China exports to the United States, and BMW AG and Daimler AG lead the way with their […]

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