Name: “Something Big Is Coming… And No One Is Ready”
Uploaded: 2025-06-17T18:28:15.000Z
Duration: 11 min 39 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

China and the United States are on the brink of signing a trade agreement that will put an end to a trade war that almost wiped out the global trade.

Adverbs of manner

An American icon, Apple, dangerously came close to witness their business evaporate, Nike almost had to triple their prices to survive, and Walmart might start to shut down store after store just to stay afloat.

Sentences with advanced comparative

It started with the United States, but the moment China responded, it spiraled out of control, and tariffs reached as high as 245 percent.

While the deal isn't yet signed by President Trump and Chairman Xi, Trump's tweets can actually give us a glimpse of hope of what the final deal could actually look like.

On paper, it looks like a big win for Trump, a 55 percent tariff on all Chinese goods and just 10 percent tariff on American exports.

But remember, things aren't always what they seem.

So let's try to figure out how the final deal most likely is going to look like, what opportunities does it present, and how you can use it to profit from the stock market.

If you are ready, give this video a thumbs up and let's get right into it.

This chart perfectly illustrates what's wrong between the two nations.

It's by far the biggest economic imbalance in modern history.

Every year, hundreds of billions of dollars will flow out of the United States to pay for Chinese goods, everything from computers and electronics to clothes and furniture.

And when Donald Trump took the presidency in 2016, his first priority was to fix this chart.

Trump struck first, slapping tariffs on 34 billion dollars worth of Chinese goods that entered the United States and accused China of unfair trade practices and theft of intellectual property.

Beijing immediately retaliated to the United States by imposing tariffs on American cars, soybeans and other agricultural products.

After a few rounds of retaliation, the two countries came together and signed an agreement.

While Beijing started buying more from the United States, the problem is far from being fixed.

The trade imbalance is still enormous between the two countries.

And Trump's second trade war is not going to fix the problem.

The main problem isn't that Chinese companies are selling in the United States.

But it's American companies who want to build their products in China.

Even before Trump, Chinese smartphones were subject to 20% tariff entering the United States.

The United States mostly imports from China smartphones, batteries and computers.

Most of the smartphones are being imported by Apple to make sure that your latest iPhone is available every single September.

Most of the computers are being imported by American companies such as Dell, HP and of course Apple.

And batteries are being sourced by EVs of the United States such as Tesla and GM to make sure that your Model 3 is available whenever you want it.

So most of the Chinese imports are not being made by Chinese companies, but rather by American companies to make sure that their business is viable in the United States.

On the other hand, United States can offer China much, besides soybeans and crude oil.

And you can't buy as much soybeans in order to compensate for the iPhones, simply for the fact that soybeans aren't worth as much as iPhones or computers or Mac or even batteries.

If a US company will come up with a smartphone, you can bet your money that there is a Chinese competitor on the horizon.

Apple once led the Chinese market, but Chinese competitors took over and Apple slipped to a third place overtaken by Huawei and Vivo.

The same thing is happening in the EV market.

Tesla once dominated the Chinese market, now being overtaken by BYD.

The US can't manufacture most of the products cheaper than China.

So the only way to fix this chart or this problem is for American consumers to deny themselves affordable Chinese goods in favor of more expensive American alternatives.

It might not be a problem for the top 10% of Americans who are making a lot of money, but it is going to make significantly poorer the bottom 50% of Americans who are making on average around 20 thousand dollars a year.

Which means that most Americans are going to get poorer.

But it seems like America is not going to take that approach and is not going to stop trading with China.

Donald Trump boasted on his social media that China is going to give the United States instant access to the rare earth minerals.

But rare earth minerals aren't actually that rare.

The United States has plenty of these rare earth minerals to meet the domestic demand from defense to smartphones to computers for decades to come.

But extracting them and processing them is where the challenge is to make them profitable.

Which is why most of the companies in the US are not willing to take that risk.

Because it's not a profitable industry to begin with.

On the other hand, China is willing to get its hands dirty and produce those minerals at a loss.

So the final deal will most likely look like a victory for Trump on one hand.

On the other side, there are going to be exceptions for Chinese smartphones, computers, and most importantly, rare earth minerals.

China does not mind supplying the United States with as much rare earth minerals the United States wants.

Anyways, it wasn't a problem in the first place.

Only through massive economies of scale and massive production, China can turn this unprofitable industry sustainable.

If China will stop supplying the United States with rare earth minerals, it will force America to get into this industry as a matter of national security, or it will create opportunities for other countries.

So the only way is to keep supplying the world to make this industry profitable for China.

So if the United States can't beat China on prices, and the US is not willing to stop trading with China, what exactly the United States is getting out of this deal?

Well, by looking at Trump's second tweet, we might actually have a glimpse of hope of what exactly is happening.

President Xi and I are going to work closely to open up China to American trade.

China heavily restricts foreign companies to operate in China.

While American icons such as GM, Apple, and Tesla have presence in China, the Chinese government blocks those firms to take full advantage out of the market from China.

BYD received 3.7 billion dollars in subsidies from the government that allowed it to undercut prices and dominate the EV market in China.

Some of the Google services are entirely blocked in China.

And Facebook wasn't even allowed to enter China in the first place.

And these are just some of the examples that restrict American companies to take full advantage out of the Chinese market.

Losing China is going to cost the United States enormously, but in 5 to 10 years, the market is going to adapt and China is going to be replaced.

On the other hand, losing the United States is going to slow down Chinese progress for decades to come.

So this is how the only reasonable and feasible agreement between the two countries would look like.

A victory on paper for Trump, so that Republicans are going to secure the midterm election that will happen next year, but includes exceptions for most Chinese goods to enter the United States tariff-free, from smartphones to computers, in exchange for softer rules for American corporations.

That would open new doors for American corporations.

They will be able to take advantage out of the market where 1.4 billion people are consumers, which means that in the next couple of years, most of the American companies will be able to at least double their sales, and that will reflect in their stock prices.

Stock prices are a reflection of how much the companies are earning, and tapping a market with over a billion people is a once-in-a-lifetime opportunity for most of the companies that would allow them to at least double if not triple their stock prices.

For example, China often requires for US companies to share their proprietary technology with local competitors if they want to sell to them, and that limits sales of companies such as Qualcomm, because sharing their designs with a local competitor risks their intellectual property to be stolen by them, and that limits their sales.

But if the Chinese government is going to soften that rule or entirely restrict it, that means that Qualcomm now can sell more of their chips to local companies such as Xiaomi and Huawei, and that was going to boost their profits, which is going to reflect in their stock prices.

In 2024, Starbucks planned to open 800 new stores all across China.

But due to local permit requirements, from land use to safety approvals, they only could open around 600, because those approvals take 6 to 12 months to launch a single store.

But a local competitor, Lakin Coffee, which is favored by the local government, could open 2,500 stores.

So softening the rules and making the approvals much easier for the US companies, that could allow Starbucks to open extra 1,000 stores every year in China, and that will add an additional 500 million dollars in profits for the company, which is going to reflect on their stock prices.

These are just a few examples of how US companies can profit out of this deal.

In fact, if you give it a very close look, you'll find out that every US company has an opportunity to profit out of it, but it doesn't mean that all of them are going to  When the two superpowers are quietly changing the rules of the game, those who are paying close attention will find themselves ahead of everyone else.

The challenge is of course to know where to look and find out what actually matters in those deals.

Of course, it's not enough to simply read the headlines, you have to analyze the companies behind them and find out which of these companies are best positioned to profit out of this deal.

So investing in the right stocks right now means taking advantage of one of the greatest opportunities that is in front of us.

But according to a survey, most Americans view investing as gambling.

With over 4000 stocks being traded in the US stock market, it is overwhelming to find the good stock.

But there is always a reason why one stock rises over the other.

And a skilled investor reads the market just like a skilled pilot reads the sky.

He knows that a turbulence is coming before it hits.

So if you want to know how I approach this, which stocks I am following and watching, and which stocks I would bet my money on, you can find out more checking the first link in the description.

Thanks guys for watching and see you in the next one.