China willing to sit down at the bargaining table to avoid a trade war
The beginning of the end of China’s stranglehold on trade and technology?
All of the concern over a nasty trade war with China may have been all for naught.
After several days of market uncertainty, on Monday, markets began edging upwards as investors are hopeful the U.S. and China can work through their tariff woes.
China is willing to hold talks with the United States to resolve their differences over trade, China’s foreign ministry said on Monday, as alarm grows over a possible trade war between the world’s two largest economies.
Ministry spokeswoman Hua Chunying made the comments at a regular briefing in Beijing.
The U.S. administration last week sent a letter to Chinese economic overseer Liu He seeking a tariff cut on U.S. autos to help cut China’s trade surplus with the United States, the Wall Street Journal said, citing unnamed sources.
In the letter, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer said China should also buy more U.S. semiconductors and give U.S. firms greater access to the Chinese financial sector, the Journal said, quoting sources with knowledge of the matter.
In the past few days, fears of a trade war have mounted following U.S. President Donald Trump’s announcement on Thursday of plans for tariffs on up to $60 billion of Chinese goods.
Firing a retaliatory warning shot in response to separate U.S. tariffs on steel and aluminium, China declared plans to levy additional duties on up to $3 billion of U.S. imports.
On the campaign trail, Trump promised to be tough on China, saying repeatedly that the country was responsible for one of the “greatest thefts in the history of the world” in how they deal with trade with the U.S.
Trump was roundly mocked for saying so, but in the past few days, the press narrative has softened slightly. The WaPo praised Trump for “finally confronting China’s economic aggression”. They also suggest that this is just the first of coming policy changes that will loosen China’s stranglehold on trade and technology.
“Technology is probably the most important part of our economy,” U.S. Trade Representative Robert E. Lighthizer said Thursday. “And we concluded that, in fact, China does have a policy of forced technology transfer; of requiring licensing at less than economic value; of state capitalism, wherein they go in and buy technology in the United States in non-economic ways; and then, finally, of cybertheft.”
Lighthizer released the results of a months-long investigation by his office meant to form the basis of the new U.S. response. Its findings confirm what academics and the private sector have long known. His office estimates that Chinese illicit practices rob the U.S. economy of at least $50 billion annually. A bipartisan commission chaired by retired Adm. Dennis Blair and former Utah governor Jon Huntsman estimated the loss to the U.S. economy due to intellectual property theft overall to be between $225 billion and $600 billion annually. The commission’s 2017 report named China as the “principal IP infringer.”
The administration plans new tariffs and will bring a case against China at the World Trade Organization regarding discriminatory licensing practices. But officials told me that the real game changer is yet to come, saying that the administration will soon announce restrictions on Chinese investment in a range of technology and other critical sectors.
While the specific actions haven’t been finalized, expect executive actions aimed at preventing Chinese state-controlled companies from swallowing up U.S. technology firms, stopping U.S. companies from handing over key technologies to China and working to persuade other Western countries to do the same.
…“The Chinese are engaged in a fundamental attack on the principles of free trade,” said Derek M. Scissors of the American Enterprise Institute. “They are not close to free traders, so we are not obligated to abide by free trade. We are overdue to confront China on this.”
This may only be the beginning, but China’s willingness to avoid a trade war could bode well for the U.S.
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it might be the fact that I turned off most MSM, but I have not seen a single article connecting the tariffs to Bolton’s appointment.
Bolton’s appointment IMO was for one reason only… to tell China that if they TRY to use NK as a means for bullying us on trade, we will wipe the norks off the planet w/out China’s help.
Bolton’s appointment made China come to the table on trade. Trump is the smartest man in the room. Again.
These fools are so used to playing the brinksmanship game on us (and winning), that they don’t know what to do when the guy on the other side of the table doesn’t blink.
Everyone needs to get it though their fat heads that they are no longer dealing with a pussy in the White House. The days of of a listless President more interested in golf than doing the right thing for America are long gone.
Pansy is another apt descriptive word for the past four…..
Finally, somebody with a pair shows the country how to do things by calling their bluff.
What’s the point of being the biggest and baddest if everyone knows you will always back down.
So how will the MSM spin this one?
However their corrupt owners want them to spin it……
Nixon opening up China was a huge mistake.
And we haven’t seen the worst of it yet.
Unless Trump successfully rebuilds America and removes China’s ability to steal IP from us and others, etc., etc., China is going to be the sole global superpower within 40 years.
That will be an unimaginably large problem for our progeny.
Don’t tell Rags that Trump did something clever, or he’s going to start shrieking “LIAR! LIAR!!!!” and then he’s going to yelp over and over while he goes in circles like a dog dragging its butt on the ground with both its back feet up in the air.
Tom, I like your replies and respect takes even when I disagree. I understand your frustration with Ragspierre and his temper, but I see no reason to intentionally swat the beehive just to get a response.
I like Ragspierre and I read his stuff with an open mind, though I do not like his bomb-throwing either.
I would just like the regulars here to be civil; we’re not leftists (with noticeable exceptions).
At any rate keep on posting. I really like your stuff.
And while you’re at it, Trump, tell China to put kim jong fat boy back in his cage, or a Rod of God from on high might find its way into his bedroom.
Dennis Rodman maybe?
What people don’t realize is that we were in a trade war with China before Trump and weren’t fighting back.
Spot on !!
I hate how this fact gets ignored, especially by people who DO know better…
You mean all we had to do was stand up to them instead of cowering in fear? Wow… who would have imagined that would be effective.
Ketchup – nope,
Pantyhose – nope,
Muslim in Black – uh, uh
Dollar Bill – where’s my cut, I’ll speak nonsense for 500k per speech (do i need to show up ? – any young girls available to help me rise to the occasion ?).
Wait a minute. I was assured by the MSM and Wall Street pundits that the world as we know it ended last Thursday, when the China tariffs went into effect. What happened here? Oh, yeah, people JUMPED to a fallacious conclusion based upon little to no evidence.
I will reiterate for those who missed it before. Wait and see what happens with these Trump economic and foreign trade actions. You have to be patient and wait for a reaction before you run around like Chicken Little screaming the sky is falling.
Also, remember that things like the reaction to the Chinese tariffs do not happen in a vacuum. This is all about money and it is all connected to the US financial Establishment which owns the US Congress and most of the media.
Life is Wonderful when you cut off the lying MSM.
Gosh. So it’s just barely possible that the orange-skinned buffoon has some idea what he’s doing after all. What a surprise.