Trade War with China

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manqiangrexue

Brigadier
The actual statement reproduced here:

"At the direction of President Donald J. Trump and President Xi
Jinping, on May 17 and 18, 2018, the United States and China engaged
in constructive consultations regarding trade in Washington, D.C. The
United States delegation included Secretary of the Treasury Steven T.
Mnuchin, Secretary of Commerce Wilbur L. Ross, and United States Trade
Representative Robert E. Lighthizer. The Chinese delegation was led by
State Council Vice Premier Liu He, Special Envoy of President Xi.

There was a consensus on taking effective measures to substantially
reduce the United States trade deficit in goods with China. To meet
the growing consumption needs of the Chinese people and the need for
high-quality economic development, China will significantly increase
purchases of United States goods and services. This will help support
growth and employment in the United States.


Both sides agreed on meaningful increases in United States agriculture
and energy exports. The United States will send a team to China to
work out the details.

The delegations also discussed expanding trade in manufactured goods
and services. There was consensus on the need to create favorable
conditions to increase trade in these areas.


Both sides attach paramount importance to intellectual property
protections, and agreed to strengthen cooperation. China will advance
relevant amendments to its laws and regulations in this area,
including the Patent Law.

Both sides agreed to encourage two-way investment and to strive to
create a fair, level playing field for competition.


Both sides agreed to continue to engage at high levels on these issues
and to seek to resolve their economic and trade concerns in a
proactive manner."
What the hell is this? That's so abstract it sounds like a poem LOL
 
now I read
China, U.S. issue joint statement on economic, trade consultations
Xinhua| 2018-05-20 03:31:10
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China and the United States issued a joint statement on Saturday on economic and trade consultations, vowing not to launch a trade war against each other.

Based on the directions of Chinese President Xi Jinping and U.S. President Donald Trump, the Chinese and U.S. delegations conducted constructive consultations on trade issues on Thursday and Friday, the statement said.

The two sides agreed to take effective measures to substantially decrease the U.S. trade deficit in goods with China.

China will significantly increase its purchase of U.S. goods and service to meet the consumption needs of the Chinese people and propel the high-quality economic development of China, which also helps support the U.S. economic development and employment, according to the statement.

The two nations agreed to meaningfully increase the export of U.S. agriculture and energy products. The U.S. side will send a delegation to China for further consultations.

The two sides talked about the expansion of trade on manufactured goods and service, and have reached consensuses to create favorable conditions to increase trade in those areas.

The statement said that the two sides highly valued intellectual property protection and agreed to promote cooperation in this regard.

China will promote revision of related laws and regulations including the Patent Law, according to the statement.

The two sides also agreed to encourage the two-way investment, and committed to creating a business environment for fair competition.

The two nations agreed to maintain high-level contacts in this regard and actively seek to resolve their economic and trade concerns.

The Chinese delegation was led by Xi's special envoy and Vice Premier Liu He, and the U.S. officials included Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer.

Liu arrived in Washington on Tuesday afternoon for economic and trade consultations with the U.S. side at the invitation of the U.S. government.

Liu, also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-U.S. comprehensive economic dialogue, leads a delegation whose members come from major economic sectors of the Chinese government.
inside there's this chart:
137191803_15267882023241n.jpg
 
Wednesday at 9:05 PM
now I read
Chinese vice premier arrives in Washington for economic, trade consultations
Xinhua| 2018-05-16 12:37:09
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now
Chinese vice premier says China, U.S. agree not to engage in trade war
Xinhua| 2018-05-20 06:06:34
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Chinese President Xi Jinping's special envoy and Vice Premier Liu He said here Saturday that China and the United States have reached consensuses on economic and trade issues, pledging not to engage in a trade war.

Liu arrived in Washington on Tuesday afternoon for economic and trade consultations with the U.S. side at the invitation of the U.S. government.

Liu, also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-U.S. comprehensive economic dialogue, leads a delegation whose members come from major economic sectors of the Chinese government.

He told media in an interview on Saturday that the two sides agreed not to launch a trade war and to stop slapping tariffs against each other, which are the most remarkable fruits of the consultations.

Noting that his visit to the United States is positive, pragmatic, constructive and productive, Liu explained that the most important reason for the achievements is the important consensus reached previously by Xi and his U.S. counterpart Donald Trump, and the fundamental cause is the needs of the two peoples and the whole world.

The two sides will enhance their trade cooperation in such areas as energy, agriculture products, health care, high-tech products and finance, Liu said.

Such cooperation is a win-win choice as it can promote the high-quality development of the Chinese economy, meet the people's needs, and contribute to the U.S. effort to reduce its trade deficit, he added.

Meanwhile, the two countries will also strengthen their cooperation in mutual investment and intellectual property protection, Liu said, adding that it not only benefits the two nations, but also helps support the stability and prosperity of the global economy and trade.

He underlined that China, with a large middle-income population, will become the world's largest market.

The Chinese market will be highly competitive, he said, adding that nations longing for the market have to improve the competitiveness of their products and service, so as to attract the Chinese people.

China is ready to buy goods not only from the United States but also from around the world, Liu said.

The Chinese vice premier added that China welcomes all countries to attend the first China International Import Expo to be held in Shanghai in November this year.

Liu also said that China will accelerate implementation of Xi's remarks at the Boao Forum for Asia Annual Conference 2018 earlier in April, when the Chinese top leader proposed to further China's efforts to facilitate the market access, build a more attractive investment environment, strengthen intellectual property protection and increase imports from other countries.

China learns from its past 40 years of reform and opening up that the opening-up can promote reform and development, Liu said, adding that Beijing will stick to the approach in the future.

It is natural for the two countries to reach consensuses this time, Liu said.

However, it should be noted that it takes time to resolve the structural problems in the bilateral economic and trade ties, he said.

The healthy development of China-U.S. economic and trade relations is in line with the historical trend, Liu said, adding that the two countries should properly handle their differences through dialogue and treat them calmly in the future, he said.
 

Equation

Lieutenant General
The US is still the world's No. 1 Economy, although it would eventually be overtaken by China. Trump will succumb to negotiating trade/tariffs with China. He is being pressured by problems of his own making and those of his supporters during the past year of his Presidency. Let's hope mutually beneficial negotiations would soon take place between the US & China; and eventually with the EU, Asean et. al. World Peace is at stake."The best kind of Victory is Victory won without fighting" Yang Xiong.
Hope is not a strategy. Trump and his followers are a bunch of idiots thinking they can just push anybody around for the world to see in order to save face as they continue to think America is the exception, therefore no need for prudent and smart decision making.
 

plawolf

Lieutenant General
I would lol if the Trump administration rolled back or even scrapped the current US high tech export restrictions against China in order to achieve a trade deficit reduction.

That is pretty much the only scenario under which China might increase purchases of US manufactured goods enough to make any significant difference to the trade deficit without tarrifs or quotas or similar government intervention aka a trade war.
 
now I read
Experts: Trade war averted; trade competition still awaits
2018-05-20 22:49 GMT+8
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"It's a hard-won achievement. But it is still not time to relax and let our guard down," commented Shen Jianguang, Managing Director and Chief Economist of Mizuho Securities Asia Limited, on the joint statement issued by China and the US vowing not to launch a trade war, during his speech at the Tsinghua PBCSF Global Finance Forum on Sunday morning.

Looking back at the trade talks between China and the US over the past two weeks, he thinks that both parties have made compromises to avert a trade war and in this case, it is without doubt a success.

The joint statement says that China would "increase the export of US agriculture and energy products."

"We will be increasing agricultural products anyway. This only means we will get more of them from the US," says Shen, "It's definitely not a loss for China."

Regarding Trump's great concern, the trade deficit, China will "significantly increase its purchases of US goods and services." says Yao Yudong, chief economist at Da Cheng Fund Management, who also considers this a win-win result.

In his opinion, China will for sure become the world's largest economy in the world, no later than 2035. Right now China is a consumption-driven economy. When income increases and consumption upgrades, Chinese people will start purchasing goods from the global community.

Against this background, it is possible that China could have a trade deficit in the future. This could mean a huge bonus for not only the US, but also the global economy's development and employment.

However, Shen also noticed that the joint statement does not touch on some specific but crucial issues in the Sino-US trade disputes, such as China's industrial policy and US's ban on ZTE. A trade war has been averted, but the trade competition still and will exist for a long time in the future.

"We have avoided an imminent trade war in the most urgent time. But the structural issues like technology competition, subsidies, and state-owned enterprise are more profound matters of question in the Sino-US trade relations," Shen explains, "In the mid-long term, we still need to be prepared for possible conflicts with the US - keep deepening opening-up and supply-side reform."

Chen Weidong, general director of the Institute of International Finance, Bank of China Group., also points out that the differences in understanding key issues could also jeopardize Sino-US trade relations. Trump and some media have accused China of technology theft since day one of the trade disputes. "I have done some research and talked to people from joint-ventures. This is simply not the truth," says Chen. This kind of noise will lead to no positive direction.

Qi Bin, vice general manager at China Investment Corp, also sees that China's economy will surpass America. But still China's labor productivity is only one tenth of America's; the US takes up 39 percent of world intellectual property revenues while China takes up less than 1%.

"This determines that competition and cooperation will co-exist in the Sino-US relations for a long time," Qi explains, "We are not afraid of competition even welcome it. We need excellent competitors to improve ourselves. But to create more opportunities and platforms for cooperation will be more constrictive."

The gap between the labor productivity of two countries just mentioned could well be such an opportunity. "But the US would not want to sell its technology to China," says Qi. He points outs that the US has simplified the complex trade issues to the public and made an impossible distinction between "us" and "them" in the increasingly globalized world.

Instead, Qi argues for a new kind of globalization: "If free trade marks globalization 1.0. Then the two-way and cross-border investment is globalization 2.0."

As more consultations and negotiations are on the way, we will see how the new era of globalization unfolds.
 
U.S., China putting trade war on hold, Treasury's Mnuchin says
noticed before I took a bath LOL here's the article
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The U.S. trade war with China is “on hold” after the world’s largest economies agreed to drop their tariff threats while they work on a wider trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Sunday.

Mnuchin and U.S. President Donald Trump’s top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future.

“We are putting the trade war on hold. Right now, we have agreed to put the tariffs on hold while we try to execute the framework,” Mnuchin said in a television interview on “Fox News Sunday.”

On Saturday, Beijing and Washington said they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to close the $335 billion annual U.S. goods and services trade deficit with China.

During an initial round of talks this month in Beijing, Washington demanded that China reduce its trade surplus by $200 billion. No dollar figure was cited in the countries’ joint statement on Saturday.

The Chinese Embassy in Washington did not return a request for comment on Mnuchin’s statement.

Kudlow told CBS “Face the Nation” it was too soon to lock in the $200 billion figure. “The details will be down the road. These things are not so precise,” he said.

Beijing agreed to take measures to substantially reduce the U.S. trade deficit with China and offered to make structural reforms, such as lowering tariffs and non-tariff barriers, that will allow the United States to export goods worth billions of dollars more, Kudlow said earlier on ABC’s “This Week.”

Trump was in a “very positive mood about this,” Kudlow said.

However, he said there was no trade deal reached.

“There’s no agreement for a deal,” Kudlow told ABC. “We never anticipated one. There’s a communique between the two great countries, that’s all. And in that communique, you can see where we’re going next.”

One next step will be dispatching Commerce Secretary Wilbur Ross to China to look at areas where there will be significant increases, including energy, liquefied natural gas, agriculture and manufacturing, Mnuchin and Kudlow said.

Mnuchin said the United States expects to see a big increase of between 35 percent and 40 percent in agricultural exports to China this year alone and a doubling of energy purchases over the next three to five years.

“We have specific targets. I am not going to publicly disclose what they are. They go industry by industry,” Mnuchin said.

Saturday’s statement made no mention of whether there would be a relaxation of paralyzing restrictions on Chinese telecommunications equipment maker ZTE Corp imposed last month by the U.S. Commerce Department.

The action was related to violation of U.S. sanctions on Iran and North Korea and banned American companies from selling semiconductors and other components to ZTE, causing the Shenzhen-based company to cease operations.

Trump said last week he had directed Ross to put ZTE back in business, but Kudlow said any changes would be minimal.

“If any of the remedies are altered they are still going to be very, very, tough, including big fines, compliance measures, new management, new boards,” he said. “Do not expect ZTE to get off scot-free. Ain’t going to happen.”
 
now I read
U.S. treasury secretary says U.S., China reach important framework deal on trade
Xinhua| 2018-05-21 00:39:29
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U.S. Treasury Secretary Steven Mnuchin said on Sunday that the United States and China have reached a deal on a "very important" framework concerning their economic and trade ties, and the two sides have agreed to put a possible trade war on hold.

In an interview with Fox News, Mnuchin said that in the just concluded economic and trade consultations between the United States and China, the two nations have "made very meaningful progress."

He added that the two sides will continue with their communications on trade issues.

China and the United States issued a joint statement on Saturday on the economic and trade consultations, vowing not to launch a trade war against each other.

The two sides agreed to take effective measures to substantially decrease the U.S. trade deficit with China.
 
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