Re:US to ban transactions with ByteDance and WeChat in 45 days
by ulfw on Friday August 07, 2020 @05:43AM
(#24080142)
What tariff? What trade? What does this action have to do with either?
Re:US to ban transactions with ByteDance and WeChat in 45 days
by Hallucinaut on Friday August 07, 2020 @06:13AM
(#24080320)
The person you responded quite clearly stated it was an approximation to other trade situations. Your response reads as a little disingenuous given the text above, but if it was genuine the "trade" is the provision of services for the exchange of money with Chinese-owned apps. Providing software services like any other service, and indeed like physical goods, is trade all the same.
Tariff may not have been a perfectly analogous choice, but prohibition can also be seen economically as an infinite tariff. China has put bans (infinite tariffs) on a great many US and other foreign companies' services and this is some, comparatively small, reciprocation.
To give a related, similar, but not exactly the same example, in order to demonstrate this idea of reciprocal trade relations:
If country A puts a tariff on country B, then it is almost guaranteed that Country B will put the same exact tariff on country A.
This example is used to demonstrate the principle of trade related relations.
This is how trade relations have worked for a very long time.
And actions regarding international, hundred billion dollar companies, are going to be related to this idea of trade and reciprocal trade relations.