We win any trade war hands down, we are the creditor nation, we already spent their money. They funded rebuilding most of the United States in the last 7 yrs, they funded two wars et al, that money is spent already-we already received the utiltity from it. They are the ones holding IOUS and praying. They are the ones with the excess capacity and nowhere to sell it to. I posted this example in the other thread who would you rather be the pawn broker or the guy borrowing the money? imagine going to a pawn broker, borrowing money, having the control to make the money worth less then going back and paying the interest. How long would pawn broker put up with that game? How long would he put up with it if he talked to other pawn broker who says the same thing and that you borrowed from him to pay the interest to the other guy? One big difference here is that China needs us to consume their output, so what would pawn broker say about the whole game-if you were also the guy who bought 70% of the stuff in his store and 70% of the stuff in all the other pawn brokers stores? Another big difference is pawn broker can become a cell phone store, China is not becoming anything beyond what it is for a long time. I pick the guy who has the whole pawn industry wrapped around his finger. As I posted in the other forum. Tires are a strategic good like domestic oil production is not something to be left up to imports for supply, this move is understandable, they should not have let speciality chemicals go and as the other guy posted rare earths. But ultimately the chinese are just going to sell the tires somewhere else cheaper which makes our competitive disadvantage worse.