Published: Mon, April 16, 2018
People | By Neil Grant

Lessons Trump should learn from China

Lessons Trump should learn from China

"We're absolutely willing to negotiate, " Treasury Secretary Steven Mnuchin said last Friday on CNBC, adding, "I'm cautiously optimistic that we'll be able to work this out". They flood our borders with risky drugs and stolen brand-name merchandise.

China's March crude oil imports climbed from a month earlier to the second highest on record, calculated on a daily basis, as refiners replenished stocks on generous government quotas and ahead of peak maintenance season. Currently, foreign ownership in Chinese bank or insurance company is limited to 25%, so it is possible to increase this limit. The tariffs, if imposed, would target about 1,300 Chinese products, including industrial robots and telecommunications equipment.

New vehicle sales in China returned to growth in March, with deliveries to dealers rising by 4.7% to 2.66m units from 2.54m units a year earlier, according to data released by the China Association of Automobile Manufacturers (CAAM). Trump responded via Twitter he was "thankful" for Xi's remarks on tariffs and access for US automakers, and said both countries would "make great progress together".

This would make U.S. products in China more expensive without punitive tariffs and Chinese exports cheaper.

State broadcaster China Central Television showed footage of Xi boarding the destroyer Changsha and navigating to an unspecified location in the South China Sea and reviewing the naval maneuver.

Most recently, President Donald Trump signed a bill passed unanimously that would allow more diplomatic exchanges between US and Taiwan officials. The effect of a tariff war on these US sectors will be more pronounced.

Collaborating with the United Kingdom and France, US President Donald Trump on Friday announced that he has approved US military strikes against chemical weapon sites in Syria.

"The most important thing we can do is to make sure the differences between the USA and China are a source of economic strength and sources of business opportunity, economic activity, not a source of conflict", Garrett said.

Trump the competitor understands that China is not just engaging in a trade war with the USA, but an all-out contest for global economic dominance in the 21st century.

In the medium and long run, the higher prices caused by both countries' tariffs will result in products from other countries becoming more competitive and establishing a beachhead in previously challenging markets, or absorbing the market share given up by the Chinese or American exporter because of higher prices.

This time China has more options than just the physical trade. The Commission on the Theft of American Intellectual Property says it costs American companies hundreds of billions of dollars each year.

"When you´re $500 billion down, you can´t lose a trade war", he said. It could be, but I don't expect it at all.

Washington lobbyists may prattle on about "free trade" - a theoretical ideal which only exists in the minds of economists -but they are really anxious about their own bottom lines.

Meanwhile, President Trump's trade adviser Peter Navarro put it this way on NBC's Meet the Press: "We want fair and reciprocal trade".

"The stuff we're asking for exclusion [for] is on the water".

China's exports rode a global trade boom a year ago, expanding at the fastest pace since 2013 and serving as one of the key drivers behind the economy's forecast-beating 6.9 percent expansion. "But the Chinese have always insisted on holding on to its dominant position and previous administrations have regularly let them achieve that goal".

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