Sunday, February 17, 2019
China and U.S. to Continue Trade Talks Next Week
The trade war with China continues with both sides trying to reach an agreement before the March 2 deadline. If the deadline is not met Trump has threatened to raise tariffs an additional 15 percent. Though if a deal seems imminent Trump would be willing to extend the deadline. Trump claims that the talks are going well and has emphasized that the deal will cover the "theft" and "unfairness" that is present in China's trade policy. One of the Trump administration's main focuses is restricting the Chinese government from investing large sums of funds into "advanced manufacturing sectors" that rival American companies. This point is important to both China and the U.S. as both see it as a matter of national security. China's involvement with high tech industries seem to remain an issue and will be an enormous barrier moving forward in the trade talks.
Article: China and U.S. to Continue Trade Talks Next Week
Subscribe to:
Post Comments (Atom)
2 comments:
While the Trade War with China has certainly not been a 'bloodless victory' for the U.S. it seems like China was/is taking it a lot worse. While the U.S. economy dropped only a few percentage points during the throws of the trade war the Chinese economy dropped nearly 30%. I think we are seeing that the net purchasing country is asserting its importance to the net producing country. While the President is engaging in his usual somewhat hyperbolic tone he reflects on the inherent reality that trade with China is not reciprocal unlike with many other of the U.S. Trading partners. China's often invests substantially in certain sectors to where they are subsidizing them to the point of non-competitiveness.
I agree it does seem like China has been suffering more than the U.S. in the trade war. I just don't see this trade war resolving anytime soon as both countries do not want to compromise on certain trade policies or practices that they deem national security risks. Some of the Trump administration's requests ask for drastic changes in China's way of operating which would require siginicant changes in the structure of how China manages its trade. I think China will try to offer some compromise but it won't go far enough and we will reach the deadline with no trade deal. Then it'll get interesting because I am curious if Trump will hesitate or not to increase the tariffs further or claim they are making leeway and give more time. Ultimately, I think Trump will be forced to increase the tariffs.
Post a Comment