Chapter 545 US-Japan Trade
The Peninsula Hotel, Suite.

The TV station is broadcasting the evening news.

Liu Tao took a hot bath, lay on the bed in pajamas, leaned against the pillow, and watched the news.

The news being broadcast at this time is about the economic and trade war between the United States and Japan.

After the end of World War II, in order to rebuild war-torn Europe, the United States implemented the Marshall Plan, which accelerated the United States' dominance in the world economy.

After the outbreak of the Korean War, Japan gradually became an important logistics base for the US military by virtue of its geographical advantages. Therefore, the United States gradually changed its occupation policy towards Japan, and the war reparations for World War II were reduced from the initial 540 billion US dollars to 22.3 billion US dollars. Japan became the United States' most advanced bastion against the Soviet Union in Asia. At that time, Japanese industrial enterprises received a large number of military orders, and the economy also experienced a "special demand boom", and the gross national product also returned to its highest level before World War II.

It can be said that the Korean War bought Japan at least 10 years.

To the extent that the Japanese business community believes that if there had not been the Korean War, Japan would never have become an economic power in the 60s.

By the 20s, Japan had rapidly risen in the automobile, color TV, and semiconductor industries. After experiencing two oil crises, Japanese cars, with their design advantages, not only impacted the American market, but also the European market.

In the 80s, Japanese cars surpassed those of the United States for the first time to become the world's number one. At the same time, Japan's semiconductor industry took 30% of the global market share at the time, defeating AMD and Intel.

A report released by the U.S. Department of Commerce in 1983 pointed out that among the five high-tech fields, the United States is currently ahead of Japan only in aircraft manufacturing and aerospace technology, while it lags behind Japan in semiconductor technology, optical fiber technology, and intelligent mechanical technology.

In 1978, the U.S.-Japan trade deficit exceeded $100 billion for the first time. By 1985, it had reached $500 billion, accounting for one-third of the U.S. trade deficit.

Not only that, Japan accounts for half of the total US foreign debt and is the largest creditor of the United States.

In order to narrow its trade deficit, the United States has adopted various measures, such as the establishment of a semiconductor alliance by several major companies and forcing West Germany and Japan to sign the Plaza Accord in 1985.

It can be said that the United States has adopted various measures to reduce its trade deficit with Japan.

However, according to Japan's announcement, its foreign trade surplus in 1986 reached 1986 billion US dollars, a record high. At the same time, the US Department of Commerce announced that the US foreign trade deficit in 1700 reached billion US dollars, a record high.

Under such circumstances, the United States' economic containment of Japan became tougher and more intense, and domestic dissatisfaction with Japan was growing day by day.

Liu Tao looked at the news, shook his head slightly, and sighed softly.

Last year's Louvre Conference did not achieve much, West Germany and Japan were unwilling to compromise and let the United States suck their blood. The United States has not been able to achieve a complete victory militarily because of the Libya and Middle East issues. Now Gaddafi is like a madman, extremely hostile to the United States, and constantly clamoring in the international arena.

The high oil prices have prevented the high inflation rate in the United States from falling.

This is because there are many high-quality and low-priced goods from China.

The United States has a trade surplus with China, and the surplus is not small.

That’s right. Last year, the U.S. trade deficit reached 1700 billion U.S. dollars.

Moreover, the total debt of the United States is about to exceed 4 trillion US dollars!
The increase in the total amount of US debt was so frightening that many people criticized Reagan, believing that his behavior was irresponsible. The dissatisfaction with Reagan within the government was growing day by day, and he was even nicknamed the "Debt President", believing that he was a worse president than Hoover.

Americans dream of reducing trade deficits and having more trade surpluses.

As one of the most important sources of every trade deficit, Japan has naturally become a thorn in the eyes and flesh of the Americans.

Liu Tao felt a sense of familiarity when watching the news. He finally understood that 40 years later, people continued to wield the big stick and exercise long-arm jurisdiction, which was a tradition.

"The Japanese are really admirable. If it were any other country, they would probably be defeated in one fell swoop by this combination of punches." Liu Tao muttered to himself.

Relying on the huge trade surplus, Japan's appreciation of the yen was not as panic as it was at the beginning, and it managed to stabilize the rhythm.

However, Liu Tao knew that Japan would eventually suffer the consequences.

The Plaza Accord is like a chronic poison, which continuously accumulates toxins in Japan, waiting for the toxins to accumulate to a certain level, which will be fatal.

Before, Japan's economic development was very healthy, but after the Plaza Accord, Japan's economic policies caused a lot of money to flow into the stock market and the real estate market. Some Japanese economists even put forward the view that the stock market and the real estate market are reservoirs.

Little do people know that manufacturing is the foundation of our existence and the basis of a strong country.

Funds flow into the stock market and property market, but less flow into manufacturing.

At the same time, the stock market and the property market are virtual, and the bubble is constantly growing. Once a shot of water is injected into the bubble, it will burst.

Now Japan is not only being chased and blocked by the United States economically, the United States is constantly forcing Japan to make concessions and sucking blood from Japan so that it can return blood. In addition, Japan is facing other challenges, such as the rapid rise of Chinese automobiles, Chinese motorcycles, Chinese color TVs, Chinese electronics industry, and Chinese semiconductors.

The total size of the world is limited, just like a piece of cake. If others eat a little more, then he will eat a little less.

Besides, Japan has a huge cost-effectiveness advantage over the United States.

China also has a great cost-effectiveness advantage over Japan.

Just in terms of labor costs, China's labor costs are much lower than Japan's.

For the same product, the price of Chinese products is much lower than that of Japanese products. For the same price, you can buy better products from Chinese products.

What's even more terrifying is that China wants high-end industries, mid-end industries, and low-end industries as well, and simply accepts all comers.

China is a vast country with a large population.

No matter how many industries there are, it can be accommodated.

This is vividly reflected in key indicators such as power generation, power consumption, coal production, and steel production. These key indicators in China are increasing at an astonishing rate.

Even if we exclude the Chinese factor, to be honest, Liu Tao is not optimistic about Japan.

Because the Japanese have a dog chain around their necks, people can lift the chain off at any time and then stab them with a knife at will.

Sooner or later, Japan will inevitably surrender and lie on the ground barking "woof woof" a few times.

So far, this world is essentially a place where the strong are respected. Whoever has the bigger fist speaks louder, and whoever speaks has power.

As for those who want to turn the tables and become the master, that is simply too difficult.

(End of this chapter)

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like