Why trade war with China is a big loser.

 DELUSIONAL ANALYSIS OF THE ECONOMIC POWER OF THE WEST

WEST IS 12 % OF WORLD POPULATION

We see Germany and Spain balking at cooperating with the EU at putting tariffs on Chinese Electric vehicles. We watched as China cancelled most all grain purchases from the U.S. in response to the electronic chip embargo from the U.S. and the corresponding crisis in the U.S. chip business. We see that Western Europe is still buying Russian gas. If Russia actually shut off energy to western Europe it would usher in an economic crisis. Germany has lost its vehicle market in Russia. It has very large and important trade with China in vehicles and manufacturing machinery and mining equipment. Warning alarms are being sounded from many places, but the obsession with containing Russia and China is now entering the critical stage. Sanctions and tariffs are not going to contain these countries, that only leaves the war option.

The reality is that he west is only 12% of the world's population, the rest of the world is growing in wealth and becoming a vast market for all things that Russia and China can produce. In a very short time the west can be replaced by the other 7.2 billion people that are not part of the western alliances, that is exactly what is happening. The rest of the world can survive and prosper without the economic activity from the west. The question is, can the west survive without access to those materials and markets? The move to replace the economic domination of the west is rapidly accelerating and will not be stopped with sanctions and tariffs.

The only credible option is a realization that only cooperation and coexistence is the solution and at present the political powers in the west are hell bent on supremacy rather than coexistence. 

Trump's initial tactic of using tariff's on products from China was called reciprocity and it was in effect a move to eliminate protection by China on U.S. products and an effort to narrow the trade imbalance. That was why China agreed to buy massive amounts U.S. grain.  China had tariffs on U.S, cars etc.. Now we see western leaders including Trump calling for massive tariffs on all Chinese products in an effort to contain China's expansion.

Below is some economic reality as to the economic power of the United States as compared to China and Russia. It is relevant if anyone believes that they can still economically contain those competitors without violent conflict.

It is interesting that we often hear that the United States has the biggest Gross Domestic Product in the world. In the real flow of dollars this measure may be accurate, but is it really a gauge of sustainability, endurance and the real ability to produce wealth. 

Today the GDP of the United States is estimated at $26.5 Trillion. Manufacturing accounts for 11% or $2.92 Trillion dollars this includes manufactured products, mining and agriculture. The largest segment of U.S. GDP is Professional and business services at 13%. Real estate rental and leasing at 12%. Government wages etc. 12%, Wholesale and retail trade at 12%, Arts, information and entertainment 10%, Health and social services 9%. Finance and Insurance 8%, Construction 4%. Miscellaneous 10%

Total debt public and private in the U.S. is now $93.5 trillion. $34 Trillion of federal government debt.

China has an estimated GDP  of $25.46 Trillion. Its manufacturing and agriculture accounts for 40.9% or $10.41 Trillion. Over 3 times that of the US.

Its Government debt is estimated at $9.5 Trillion.

Russia GDP is estimated at $5.5 trillion, Manufacturing  and agriculture is 36.69 % or $2.02 Trillion. Government debt is an eye opening estimate of only $343 Billion.

This is my point, When you strip out all the money that is generated by non-wealth producing activities, we see that the real wealth of these nations is not as far apart as many would like to believe. 

I suspect a similar comparison to western European nations would show similar results. It explains why Russia is able to manufacture military supplies that actually seems to outperform the U.S. and the European production. Much of the financial activity is focused on things that do not support life or create wealth.

Then compare the debt, and if objective, subtract the debt from the GDP and it is startling. 

Real economics has always believed that wealth is created by resources and labor producing things that have more value than the value of the resources and labor. Real wealth creation. 

China is without a doubt far and above everyone in real wealth creation. The United States and Russia are more comparable.  Then consider that China has over 1 billion population, The U.S. 340 million and Russia an estimated 140 million. If we would then compare these figures with population it would be an indication of productivity per person in actual wealth creation.

Realistic comparison should show why the west cannot succeed in a trade war with the rest of the world.