Check out Smoot Hawley Tarriff and its impact. Retaliation was swift and devastating to all. At first blush, It would probably hurt the US, China, Canada, Australia, Brazil, Russia, Japan, Korea and Germany the most depending on the size of exports as a % of GDP.
As to companies incorporating in another jurisdiction being treason- See, RIG, NE, and many other multi-nationals are incorporatin in Switzerland. As much of their income is from across the globe, other than "US stability" which is now in doubt in some people's mind, there is no reason they can't move if they choose. Yes- they would still be taxed on US sourced income, if any.
BTW- I'm not a big fan of China, I think their banks have huge issues that haven't been addressed, their gov't has "wasted"/spent with no material increases in productivity most of their surplus, and China may soon find itself in a lost decade much like Japan. See, e.g., China's Lost City- Odros.
Moreover, most politician are attorneys and while academically intelligent, haven't got a clue as to economics/the unintended consequences of law changes nor what it takes to run a business. JMHO GLTA
PS- politicians answers to questions are largely non-responsive.
There was a time when the pen was mightier than the sword. That was a time when people believed in truth and regarded truth as an independent power and not as an auxiliary for government, class, race, ideological, personal, or financial interest.
Today many whose goal once was the discovery of truth are now paid handsomely to hide it. “Free market economists” are paid to sell offshoring to the American people. High-productivity, high value-added American jobs are denigrated as dirty, old industrial jobs. Relicts from long ago, we are best shed of them. Their place has been taken by “the New Economy,” a mythical economy that allegedly consists of high-tech white collar jobs in which Americans innovate and finance activities that occur offshore. All Americans need in order to participate in this “new economy” are finance degrees from Ivy League universities, and then they will work on Wall Street at million dollar jobs.
Economists who were once respectable took money to contribute to this myth of “the New Economy.”
And not only economists sell their souls for filthy lucre. Recently we have had reports of medical doctors who, for money, have published in peer-reviewed journals concocted “studies” that hype this or that new medicine produced by pharmaceutical companies that paid for the “studies.”
The Council of Europe is investigating the drug companies’ role in hyping a false swine flu pandemic in order to gain billions of dollars in sales of the vaccine.
Wherever one looks, truth has fallen to money.
Wherever money is insufficient to bury the truth, ignorance, propaganda, and short memories finish the job.
As an economist, I am astonished that the American economics profession has no awareness whatsoever that the U.S. economy has been destroyed by the offshoring of U.S. GDP to overseas countries. U.S. corporations, in pursuit of absolute advantage or lowest labor costs and maximum CEO “performance bonuses,” have moved the production of goods and services marketed to Americans to China, India, and elsewhere abroad. When I read economists describe offshoring as free trade based on comparative advantage, I realize that there is no intelligence or integrity in the American economics profession.
Intelligence and integrity have been purchased by money. The transnational or global U.S. corporations pay multi-million dollar compensation packages to top managers, who achieve these “performance awards” by replacing U.S. labor with foreign labor. While Washington worries about “the Muslim threat,” Wall Street, U.S. corporations and “free market” shills destroy the U.S. economy and the prospects of tens of millions of Americans.
With over 21 per cent unemployment as measured by the methodology of 1980, with American jobs, GDP, and technology having been given to China and India, with ..., the liberty and prosperity of the American people have been thrown into the trash bin of history.