Trade War with China

localizer said:

After listening to the tone his whole response, I think US reps (Likely Lighthizer) have been disrespecting Liu He and the Chinese people during negotiations just like he did to the Japanese team.

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During the just concluded round of China-U.S. trade talks, Washington increased additional tariffs on 200 billion U.S. dollars' worth of Chinese imports from 10 percent to 25 percent, a move Beijing deeply regrets and will be forced to respond to with necessary countermeasures.

As China has repeatedly stressed, slapping additional tariffs is no solution to the problems. Only cooperation and consultation are the right way forward, and any settlement has to be based on respect of each other's core concerns.

The latest round of trade talks has once again demonstrated China's maximum sincerity. Despite the U.S. tariff threat, China acted in a responsible manner and still sent its delegation to Washington to continue consultations.

It has also once again demonstrated that no winner comes out of a trade war. Washington's latest wielding of the tariff stick has rattled and battered the global capital market, which serves as yet another warning that such unilateralist moves are harmful not only to both countries, but to the world at large.

Fairly speaking, the two sides, after 11 rounds of high-level economic and trade consultations, have made substantial progress in such areas as strengthening protection of intellectual property rights, broadening market access and promoting a more balanced two-way trade; yet differences remain on issues involving China's core concerns.

And as Chinese Vice Premier Liu He said after the latest round of talks, the consultations have not derailed. Twists and turns in negotiations are inevitable. However, China will never compromise on issues of principle.

Reassuringly, both sides have shown willingness to continue consultations, and agreed to meet again in Beijing in the future. All these positive messages could deliver the world more reasons to be cautiously optimistic about the prospect of China-U.S. consultations.

Yet to settle differences and advance talks, both sides should respect each other's core concerns, and meet each other halfway on the basis of mutual respect, equality and mutual benefit.

As Liu said, China wants a cooperation agreement featuring equality and dignity. It has been proven time and again that the bottom line, or the red line, for discussions to continue lies in respecting each other's core interests and major concerns.

Equal footing and win-win results are fundamental guarantees for the two sides to reach a final agreement. Any dialogue in which a party coerces the other with the aim of achieving a one-sided result would only derail the consultations.

Sources have said that differences remain on three key issues involving China's core concerns, namely, the removal of all additional tariffs, the volume of purchased goods and the balance of the wording of the text.

It is a common call of U.S. business community and farmers for removal of Washington's additional tariffs on Chinese imports. In a joint letter from more than 140 trade associations in the United States, they told U.S. President Donald Trump that the additional tariffs imposed on China are actually a tax increase on American companies and consumers, which will lead to layoffs, delayed investments and rising prices, among other adverse effects.

To resolve differences and push forward consultations, the two sides should identify the general direction of cooperation and show more wisdom in seeking the "greatest common denominator" between the two countries.

Forty years after China and the United States established diplomatic relations, the only right choice for the two countries is to work together for mutual benefit. Economic and trade cooperation featuring equality and mutual benefit has acted as the "ballast stone" and "propeller" in China-U.S. relations as their trade volume has grown from less than 2.5 billion U.S. dollars to more than 630 billion dollars in the past four decades.

The two economies have been inextricably interwoven in the global supply chains with economic globalization.

To go with the trend, it is crucial for both sides to maintain strategic focus, try to enhance mutual trust, and resolve their differences on core issues.

It is a test of wisdom for both sides as whether they could accommodate each others' core concerns and bring the trade talks back on the right track to solve problems while upholding their respective principles and bottom lines.

Furthermore, both China and the United States should bear in mind the persistency, complexity and toughness of their economic and trade disputes, and render more patience and perseverance.

As both history and the reality have shown, talks and tussles may be normal for Beijing and Washington to resolve their economic and trade frictions. China, though resolutely opposing any kind of trade war, has been fully prepared to rise up to it and at the same time will continue to be rational in future talks.

Like entering the last run of a marathon, China and the United States will negotiate, point by point, the text of the agreement. Beijing will be more patient in face of ups and downs in the negotiations, and be fully prepared for all sorts of risks and challenges with a peace of mind.

China, with a solid foundation and huge potential as well as strong risk resistance capacity, has confidence, determination and capability to meet future challenges and risks.

It is more convinced than ever that only by implementing the policy of reform and opening up, promoting high-quality growth and building a strong domestic market, can China be more capable of meeting challenges and embracing a brighter future.

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• Despite ending without a deal, Beijing’s lead negotiator describes latest talks in Washington as ‘constructive’, says next round will be held in Beijing
• In candid interview, Liu outlines differences between the two sides but rejects allegations China reneged on earlier commitments

The latest trade war talks between China and the United States in Washington may have ended without a deal on Friday, but Beijing’s top negotiator said the negotiations have not broken down.

Speaking to selected Chinese media in the US capital before heading home, Vice-Premier Liu He described the meetings as “candid and constructive” and said the two sides had agreed to meet again in Beijing to continue their discussions.

For the first time, Liu also outlined the differences between the two sides.

“The negotiations have not broken down,” he says in a video clip published on Xinhua’s website. “Quite the opposite. I think they are normal. Small setbacks are inevitable in bilateral negotiations. Looking ahead, we are cautiously optimistic about the future.”

In unusually frank and timely comments, Liu said that while Beijing and Washington still had differences to resolve, he dismissed allegations that China had reneged on earlier promises and commitments.

In a transcript of the press interview published on the website of Phoenix Television, a Hong Kong-based broadcaster, Liu said there were several issues on which the two sides still disagreed.

“China believes tariffs are the starting point of the bilateral trade disputes,” Liu said. “If a deal is to be reached, the tariffs should all be eliminated. This is the first point.”

The second regarded China’s promise to buy more goods from the US, he said.

While an initial deal was reached when Chinese President Xi Jinping and US President Donald Trump met in Argentina in December, the two sides now held different views on what had actually been agreed, Liu said.

“This is a very serious issue,” he said, adding that the deal had to be both balanced and fair.

It was a matter of principle that the two sides were not only cooperative but also respectful of one another, Liu said.

“We are very clear that we cannot make concessions on matters of principle. We hope our US colleagues understand this.”

Liu said that the trade negotiators on both sides of the table had shown they were sincere in their efforts to tackle problems and resolve differences, but reaching a deal was not a short or easy process.

“We need to take it bit by bit,” he said. “It’s like running a marathon. It gets harder as you reach the final stages. At that moment, you need to hold on to get past the dark and reach the dawn. We just hope that there can be understanding and support on all sides.”

The latest talks in Washington came just hours after Trump made good on his threat to increase tariffs on US$200 billion worth of Chinese imports. He justified the move by saying Beijing had delayed the process of reaching a trade deal by reneging on commitments it had made during months of negotiations.

Liu said that China strongly opposed the tariff increase and would “have to respond”.

“We hope the US adopts a restrained approach,” he said. “China will also show restraint. We should prevent an unlimited escalation.”

While problems remained between the US and China – on issues such as forced technology transfers, intellectual property protection and state-sponsored enterprise – it was vital the two sides did not overreact, he said.

Meanwhile, the vice-premier talked up the

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of China’s economy, citing rising industrial competitiveness and strong domestic consumption.
“China firmly opposes the trade war, but is fully prepared for it and will deal with the matter rationally,” he said.

Chinese state media on Saturday took a defiant stance on Washington’s latest efforts to increase the pressure on Beijing.

“China requires that all tariffs be eliminated to restore normal bilateral trade,” People’s Daily, the mouthpiece of the Communist Party, said in a commentary.

“The trade procurement figures should be realistic, the text must be balanced and expressed in a way that is acceptable to the Chinese people and does not undermine the country’s sovereignty and dignity.”

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China is urging the US to respect the principle of the market economy and stop its groundless containment of Chinese firms in the name of national security, the Chinese Foreign Ministry said on Friday.

The comment followed a decision by the US Federal Communications Commission (FCC) on Thursday to deny China Mobile USA's bid to provide telecommunications services between the US and other countries, according to a document on the FCC's website.

The FCC might revoke similar approvals for other state-owned carriers, including China Unicom and China Telecom, to operate in the US, Reuters reported on Thursday, citing FCC Commissioner Brendan Carr.

China has consistently encouraged its firms to invest overseas and comply with international rules, market laws and local regulations, Foreign Ministry Spokesperson Geng Shuang told a regular briefing on Friday.

"We urge the US to respect the principle of the market economy, stop generalizing national security and its unreasonable suppression of Chinese companies," said Geng.

An environment characterized by fairness, justice and non-discrimination is needed for Chinese companies seeking to develop in the US, he noted.

In 2011, China Mobile USA filed an application to provide international facilities-based and resale services between the US and other destinations. Last year, the National Telecommunications and Information Administration, a branch of the US Commerce Department, filed a recommendation to deny China Mobile USA's application due to national security and law enforcement concerns.

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localizer said:

If we think about how the supply chain works. Not only will US manufacturers that rely on Chinese input goods lose competitiveness in overseas, they will also lose to foreign companies that produces similar goods and sell to the US. Small businesses will have no way to handle this and China's industrial capacity cannot be replicated elsewhere in the span of a few years.

In all, Trump cut taxes for the rich and placed an regressive sales tax on the poor to make up for the loss. In addition, he's killing off small business competitors in favor of giants that can shift logistics more easily.

Too bad the poor is too dumb to realize this and will still vote for him for his anti-immigration/China rhetoric.

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