“With the arrival in Beijing this week of America’s top trade negotiators, you might think that the U.S. and China are about to enter high-level talks to avoid a trade war and that this is a story for the business pages. Think again. This is one for the history books.
Five days of meetings in Beijing with Chinese, U.S. and European government officials and business leaders made it crystal clear to me that what’s going on right now is nothing less than a struggle to redefine the rules governing the economic and power relations of the world’s oldest and newest superpowers — America and China. This is not a trade tiff.
“This is a defining moment for U.S.-China relations,” said Ruan Zongze, executive vice president of the Chinese Foreign Ministry’s research institute. “This is about a lot more than trade and tariffs. This is about the future.”
In one corner stand President Trump and his team of China trade hard-liners, whose instinct is basically right: This is a fight worth having now, before it is too late, before China gets too big.”
Source: Opinion | The U.S. and China Are Finally Having It Out – The New York Times
Yes, Sir. I agree.
Here are two comments I recommended:
WASHINGTON — It sounds like something out of a science fiction movie: In April, China is said to have tested an invisibility cloak that would allow ordinary fighter jets to suddenly vanish from radar screens.
This advancement, which could prove to be a critical intelligence breakthrough, is one that American officials fear China may have gained in part from a Chinese researcher who roused suspicions while working on a similar technology at a Duke University laboratory in 2008. The researcher, who was investigated by the F.B.I. but never charged with a crime, ultimately returned to China, became a billionaire and opened a thriving research institute that worked on some projects related to those he studied at Duke.
The Trump administration, concerned about China’s growing technological prowess, is considering strict measures to block Chinese citizens from performing sensitive research at American universities and research institutes over fears they may be acquiring intellectual secrets, according to people familiar with the deliberations.
The White House is discussing whether to limit the access of Chinese citizens to the United States, including restricting certain types of visas available to them and greatly expanding rules pertaining to Chinese researchers who work on projects with military or intelligence value at American companies and universities. The exact types of projects that would be subject to restrictions are unclear, but the measures could clamp down on collaboration in advanced materials, software and other technologies at the heart of Beijing’s plan to dominate cutting-edge technologies like advanced microchips, artificial intelligence and electric cars, known as Made in China 2025.
Source: White House Considers Restricting Chinese Researchers Over Espionage Fears – The New York Times
“SHANGHAI — Beijing and Washington have threatened each other with tariffs for weeks, raising the prospect of a trade war. But on Tuesday, China took a step to lower tensions, offering to make it easier for foreign automakers and aerospace manufacturers to own factories in the country.The Chinese authorities said that in the next five years they would ease rules that have long required carmakers like General Motors, Toyota and Volkswagen to link up with a local partner before building a factory in China.”
Source: China Loosens Foreign Auto Rules, in Potential Peace Offering to Trump – The New York Times
“President Trump said he would impose about $60 billion worth of annual tariffs on Chinese imports on Thursday as the White House moved to punish China for what it says is a pattern of co-opting American technology and trade secrets and robbing companies of jobs and billions of dollars in revenue.
The measures come as the White House grants a long list of exemptions to American allies from steel and aluminum tariffs that go into effect on Friday, including the European Union, which has lobbied aggressively and publicly for relief from the trade action.
“The word that I want to use is reciprocal,” Mr. Trump said in announcing the tariffs in the Diplomatic Room of the White House. “If they charge us, we charge them the same thing.”
The China tariffs are his strongest trade action yet against a country he has branded an “economic enemy.” They fulfill one of his core campaign pledges, to demand more reciprocal deals with trading partners around the world.
But coupled with the administration’s decision to exempt the European Union, South Korea, Brazil, Canada, and Mexico from the tariffs on cheap metals, the action demonstrates how much Mr. Trump’s nationalist trade agenda is really targeted at a single country: China.”
Source: Trump Hits China With Trade Measures as White House Exempts Allies From Tariffs – The New York Times
SANTIAGO, Chile — A trade pact originally conceived by the United States to counter China’s growing economic might in Asia now has a new target: President Trump’s embrace of protectionism.
A group of 11 nations — including major United States allies like Japan, Canada and Australia — signed a broad trade deal on Thursday that challenges Mr. Trump’s view of trade as a zero-sum game filled with winners and losers.
Covering 500 million people on either side of the Pacific Ocean, the pact represents a new vision for global trade as the United States threatens to impose steel and aluminum tariffs on even its closest friends and neighbors.
Mr. Trump withdrew the United States from an earlier version of the agreement, then known as the Trans-Pacific Partnership, a year ago as one of his first acts in office. It will undeniably be weaker without the participation of the world’s biggest economy, but the resuscitated deal serves as a powerful sign of how countries that have previously counted on American leadership are now forging ahead without it.
“Only free trade will contribute to inclusive growth of the world economy,” Taro Kono, Japan’s foreign minister, told a group of ministers from Southeast Asian countries in Tokyo on Thursday. “Protectionism isn’t a solution.”
Source: U.S. Allies Sign Sweeping Trade Deal in Challenge to Trump – The New York Times
Here is a comment I endorsed at the NYT.
I’m sure that most in the beef industry voted for Trump. Well guess what, More expensive steel is going to mean your costs are going up and the tariffs mean your income is going down. America First? Much more of this and it will be America Last.
WASHINGTON — President Trump is arriving at the World Economic Forum in Davos, Switzerland, to explain his “America First” approach at a moment when the world is moving ahead with a trade agenda that no longer revolves around the United States. The world marked a turning point in global trade on Tuesday, when 11 countries agreed to join the Trans-Pacific Partnership, announcing they had finalized the pact and expected to sign a deal on March 8 in Chile. It was a remarkable moment for a beleaguered agreemen
Source: As U.S. Trumpets ‘America First,’ Rest of the World Is Moving On – The New York Times
David Lindsay: Yes. Donald Trump, or Twitter Drumpf as I like to call him, is damaging the US in world trade, and no where more than in Asia, with his pulling out of the Transpacific Parntership.
Here is the top comment so far, I endorse:
“HO CHI MINH CITY, Vietnam — Do Thi Minh Hanh, a labor activist, had grown accustomed to being beaten, hospitalized and jailed for her work in a country where independent trade unions are banned.
So it gave her hope for a reprieve when Vietnam reached a trade deal with the United States and other countries that called for its members to bolster workers’ rights and protect independent unions.
That hope fizzled in late January, when President Trump pulled the United States out of the trade deal, the Trans-Pacific Partnership, with the stroke of a pen.“
The Vietnamese government will use this as an excuse to suppress the labor movement,” Ms. Hanh said. “They never wanted to have independent unions in Vietnam.” “
“Today, the United States and most developed countries have few tariffs, but some remain. The United States, for example, protects the domestic sugar market from lower-priced global suppliers and imposes tariffs on imported shoes, while Japan has steep surcharges on agricultural products including rice, beef and dairy. The pact was an effort to create a Pacific Rim free-trade zone.
Environmental, Labor and Intellectual Property Standards
United States negotiators stressed that the Pacific agreement sought to level the playing field by imposing rigorous labor and environmental standards on trading partners, and supervision of intellectual property rights.”