China embraces America's bankruptcy system. US government rakes in record $7.1bn from import tariffs from US-China trade war.
The Circle of Life and Debt: China’s distrust of the US might be at an all-time high but of late, it is willingly importing one particular American idea – bankruptcy courts.
For years, keeping social stability in mind, failing companies were propped up via capital from the government or loans from state-run banks. Whatever the country had akin to bankruptcy legislation was routinely ignored by courts due to concerns over social unrest that could follow any large-scale lay-offs – which could threaten or put into question the primacy of the Communist Party.
But as the number of failing companies rises, the economy slows, and government coffers run dry, continuing such frequent bailouts has become an unsustainable affair. This has led to Beijing embracing bankruptcy and doing something it hasn’t been comfortable with for a long time: letting its companies fail. WSJ
Tariff Crops: Meanwhile, across the Pacific, the US government collected the highest amount of tariffs in its history. In September, Americans paid a total of $7.1bn in import taxes. This was 59% higher than the previous month and the most in the country’s history.
This sharp increase is a product of the US-China trade war, particularly the duties slapped on $111bn worth of Chinese imports on September 1, which affected far more consumer products than in the previous rounds of escalation. Business Insider
(Don't want to miss out on these End Of Day Wrap Ups? Subscribe Now to our WhatsApp Feed and get the day's Top Business stories straight on your favourite messaging app.)