Here are the reasons for Trump’s economic war with China

(THIS ARTICLE IS COURTESY OF THE GUARDIAN NEWS)

 

Here are the reasons for Trump’s economic war with China

On Friday the US president ‘hereby ordered’ companies to halt business with China, among other attacks – how did we get here?

Donald Trump and Xi Jinping in Osaka, Japan, on 29 June.
 Donald Trump and Xi Jinping in Osaka, Japan, on 29 June. Photograph: Kevin Lamarque/Reuters

Even by Donald Trump’s standards his Twitter rant attacking China on Friday was extraordinary. In a series of outbursts Trump “hereby ordered” US companies to stop doing business with China, accused the country of killing 100,000 Americans a year with imported fentanyl and stealing hundred of billions in intellectual property.

The attack marked a new low in Sino-US relations and looks certain to escalate a trade war already worrying investors, manufacturers and economists who are concerned that the dispute between the two economic superpowers could trigger a recession.

Not so long ago Trump called China’s president, Xi Jinping, “a good friend”. Now he is an “enemy”. How did we get here?

China, China, China

On the campaign trail Trump railed against China accusing it of pulling off “one of the greatest thefts in the history of the world” and “raping” the US economy.

Trump repeated the word China so often it spawned a viral video of him saying it over and over again. The attacks were a hit with voters and helped get him elected. He has continued lambasting China – to cheers – at rallies ever since.

Pinterest

His main beef? The trade deficit.

Trade deficit

The US imported a record $539.5 bn in goods from China in 2018 and sold the Chinese $120.3 bn in return. The difference between those two numbers – $419.2 bn – is the trade deficit.

That deficit has been growing for years as manufacturing has shifted to low-cost China and, according to Trump, it explains the hollowing out of US manufacturing.

For Trump, and especially for his adviser Peter Navarro, who once described China as “the planet’s most efficient assassin”, trade deficits represent an existential threat to US jobs and national security. China makes up the largest part of the US trade deficit but those fears are also behind his disputes with the EU, Canada and Mexico.

His detractors argue these deficit worries are hyperbole and a result of the US’s stronger economy, which allows consumers to buy goods at cheaper prices.

The truth is probably somewhere in between.

While it’s true that unemployment is at record lows and consumers continue to prop up the economy, manufacturing jobs have been lost (automation is also to blame for this) and with them wage growth (although the hollowing out of unions plays a part here).

But it is not just deficits that concerns Trump.

Thieves

China has a deserved reputation for intellectual property theft. On Friday, Trump estimated China robs the US of “hundreds of billions” a year in ideas.

In March, a CNBC poll found one in five US corporations had intellectual property stolen from them within the last year by China.

According to the Commission on the Theft of American Intellectual Property, the theft costs $600bn a year.

Beijing bucks

Like Tesla, Nio, a Chinese electric vehicle (EV) company, is suffering as subsidies for EVs are phased out. Unlike Tesla, Nio has Xi. China is pumping $1.5 bn into the company to keep it on the road, the latest in a series of handouts that the Trump administration believes are unfair.

Cheap steel and aluminium, subsidized by the Chinese government, are the origins of this trade dispute. According to the White House, last year alone China dumped and unfairly subsidized goods including steel wheels, tool chests and cabinets and rubber bands on to the US market.

To be fair the US too is more than willing to bail out its industries (see: the banks or the automakers) at the taxpayers’ expense. But at this point “fair” is not up for discussion.

Currency manipulator

Earlier this month the US officially accused China of manipulating its currency “to gain unfair competitive advantage in international trade”.

It was the first time since 1994 that such a complaint has been made official and comes as the dollar has strengthened against world currencies. The dispute adds another layer of tension to a complex situation.

China disputed the charge accusing the US of “deliberately destroying international order” with “unilateralism and protectionism”.

The International Monetary Fund (IMF) appears to be on China’s side, arguing the devaluation of the yuan is largely in line with worsening economic conditions in China.

What happens next?

The US has now slapped billions of dollars on tariffs on Chinese goods. China retaliated, again, on Friday with more levies on US goods. China’s economic growth has slowed to levels unseen since 1992; US economic forecasts have also been cut.

American farmers were the first to feel the result, as China has canceled orders, and manufacturers are increasingly gloomy. So far US consumers have not felt the pinch but JP Morgan estimates the average US household will end up paying $1,000 a year for goods if the latest set of tariffs go through.

The unanswerable question is whether any of this will sway Trump. If his supporters continue to see a trade war with China – and the pain it will cause – as the necessary price to Make America Great Again, then the answer is probably no.

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China to counter any new US tariffs

(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA NEWS AGENCY ‘SHINE’)

 

China to counter any new US tariffs

Shine

China’s Commerce Ministry said on Thursday that the country would have to take countermeasures if the United States imposes new additional tariffs on Chinese goods.

This came after the United States threatened an additional tariff of 10 percent on about US$300 billion of Chinese imports.

China’s position is consistent and clear. “Trade wars produce no winners. China does not want a trade war, but it is not afraid of one, and it will fight one if necessary,” Ministry of Commerce spokesman Gao Feng told a press conference.

Although the United States announced a plan to postpone the tariff hike on some Chinese goods, any new US tariff hike will lead to an escalation of trade frictions unilaterally, Gao said.

“If the United States acts arbitrarily, China will have to take countermeasures,” he said.

The tariff measures will damage the interests of both China and the United States, and may also have a recessionary impact on the global economy, Gao said.

“If the United States goes ahead willfully, it will have a serious negative impact on US businesses and consumers,” Gao said.

“Some US financial institutions have predicted that the tariffs would cost an ordinary US family US$1,000 a year on average.

“At the same time, the delay in imposing tariffs on some goods fully demonstrate that there are no winners in a trade war,” he said. “If the trade frictions escalate, US consumers and businesses will suffer heavy losses.”

Gao expressed the hope that the US side would stop its erroneous practice of imposing tariffs, meet halfway with China, and find a solution to the problem based on equality and mutual respect.

He said that the US move would pose certain challenges to China’s exports and economy, but the impact is fully controllable in general.

“The Chinese side is confident, determined and capable of meeting various challenges and maintaining the sound and stable development of its economy and foreign trade,” he added.

Chinese and US chief trade negotiators held a phone conversation on August 13 and agreed to hold another phone conversation in two weeks.

“The two negotiating teams have maintained communication,” Gao said.

US and Chinese negotiators are due to meet in September in Washington. The last round of talks in Shanghai in July ended with no indication of progress.

Gao also said Beijing is working on a planned corporate blacklist of “unreliable entities” that might face curbs on their operations but gave no timeline.

China announced plans for that list after Washington imposed curb on sales of US technology to telecom equipment producer Huawei Technologies Ltd.

The United States has imposed 25 percent tariffs on US$250 billion of Chinese products.

China retaliated with its own penalties on US$110 billion of goods from the United States.

China, Trump And Tariffs: My Idea On How To Best Do The Tariffs

China, Trump And Tariffs: My Idea On How To Best Do The Tariffs

 

First, the government of China is no one’s friend just as Putin’s government in Russia nor is the fat little Rocket Man in North Korea. I know that statement will bring a rebuke from Mr. Trump who thinks these guys love him, but then again, he is possibly the world’s biggest idiot. I did not say that the people of these countries are ass-hats like their Leaders and Ours are. I have nothing against the people of these Countries, just their Leaders, and our Leaders.

 

Now, about those tariff’s, this is what I wish our government’s policies were toward China. Personally I believe that the whole world should stop buying anything that has to do with China as long as they have a Communists government in place who seems to think that everything on earth should be theirs to control, including all the land, oceans and air space. When anyone buys anything that is made in China you are feeding their military buildup that they will use to subjugate their own people and the people of the Nations around them.

 

But for a more doable emmediate tariff policy I believe the following approach should be adopted. Instead of having a trade war with China via tariff’s I believe that our government should only put tariffs on products that are coming into the U.S. from companies who have outsourced jobs that used to be here in our Country.  Including to China, Indonesia, Vietnam, Mexico or any other Nation. For the purpose of an example let us use General Motors. If General Motors wants into the Chinese market for the purpose of making vehicles for the Chinese market I have no problem with that at all. But, if they take jobs away from our people and then want to sell in our market I believe that our government needs to put a 100% tariffs on all of those imports. Make it very un-profitable for the company to take away American jobs if they want to sell to our market. This program would keep American companies from closing factories here and it would force the companies who have closed shops here to reinvest in our Nation, not an enemy Nation like China.

 

As I said earlier, the people of China are not our enemy, but their government damn sure is. And, in my opinion, companies who have outsourced American jobs for the sole purpose of higher profits should be treated as enemies of the American people. If you have noticed, when a company closes shop here in the States and moves to a “cheaper” place to make their products they never ever lower the prices they sell their products for. If a company made a product here in the States and sold it for $20 then they close shop here and move to China they still sell the product for $20, the name of the game is all and only about profits, to hell with the people, they only want your money. We need to quit giving it to them. Force them to move back here, if they refuse then tariff the hell out of them and also sell all of their stock, don’t allow it to be sold on the U.S Stock Exchange, bankrupt their asses. If our Leaders really want to put America, then prove it!

Screw U.S. Companies Whining About China Sanctions: Bring Those Jobs Back Home

Screw U.S. Companies Whining About China Tariff War: Bring Those Jobs Back Home

 

This oped to you will be short if not sweet today. This is simply my opinion on President Trump’s sanctions on countries like China and Mexico. These tariffs and sanctions do hurt a lot of companies here in the U.S. and it will make some of the products we buy here in the States more expensive. My response to that issue is simple, if they had not closed their manufacturing plants here in the States, throwing millions of Americans out of work then these issues would not be an issue to them or us at all. Companies, especially those on the world Stock Markets have moved ‘offshore’ for the purpose of higher profits at the cost to American jobs and the American tax structure need to be hit with at least a 100% tariff on everything they want to bring back into the U.S. for sell here. I am not a fan of President Trump at all, I literally can’t stand that crooked ignorant putz but I wish he would put up a program of tariffs and restrictions on any goods coming into into the States from such companies. When companies move out of this country it is so that they can increase their profit margins, period. It is not a reality that a company moves away and then lowers the prices of their products to give a better deal to the consumer.  Everything is about profits, period. Our government if they had any hootspa would make the tariffs so high on these traitorous companies that they would be forced to either quit selling to the American market, or bring their factories back here to the States in which they deserted. Personally as I have aged and had many years of observing the Stock Market systems I have come to the conclusion that Stock Markets are pure poison to the workers of the world, at the very least that is so here in the U.S.. Okay, that is my observation for the day, what are your thoughts on this issue?

Mexico Had Agreed To These ‘New’ Measures Months Ago

(THIS ARTICLE IS COURTESY OF CNN AND THE NEW YORK TIMES)
(THE FRAUD IN CHIEF STRIKES AGAIN, CREATE A PROBLEM, DO NOTHING, THEN FIX THE PROBLEM AND TAKE CREDIT FOR HIS ‘GREAT WORK’, TOTAL FRAUD!)(oped: oldpoet56)

Mexico had already promised to take many of the actions agreed to in Friday’s immigration deal with the US — months before President Donald Trump’s tariff threat, officials from both countries who are familiar with the negotiations told the New York Times in a story published Saturday.

Trump moved to accept the existing agreements in a deal Friday after negotiations prompted by his threat to impose growing tariffs on Mexico in response to the border situation dragged on over several days. Talks between Mexican Foreign Minister Marcelo Ebrard and State Department officials lasted for more than 11 hours Friday.
The Mexican government had pledged to deploy the National Guard nationwide with a focus on its southern border — a key part of Friday’s agreement — during secret meetings in March between former Homeland Security Secretary Kirstjen Nielsen and Mexican interior secretary Olga Sanchez in Miami, the officials told the Times.
The deal’s key expansion of a program that would keep asylum seekers in Mexico while their claims are processed was established in two heavily brokered two diplomatic notes exchanged between the two countries, the Times reported. Nielsen announced the Migrant Protection Protocols during a House Judiciary Committee hearing in late December.
One senior government official insisted to the Times that the Mexican government agreed to move to deter migrants faster and more aggressively than they ever had before this week’s talks.
As Ebrard noted in a news conference after the agreement’s announcement Friday, the Mexican government did not accept the US’s push for a safe third country agreement, which would require asylum seekers traveling through Mexico to make their case for American asylum in Mexico.
“They proposed in the first meeting to have (a) third safe state, which is not the case here, which is very important. And on the other hand, we accepted to have a more extended version of (migrants remaining in Mexico during asylum claim processing) and to accelerate the deployment of the national guard,” Ebrard said, calling the deal “a fair play.”
Trump presented the deal as a win in a pair of tweets early Saturday.
“Mexico will try very hard, and if they do that, this will be a very successful agreement for both the United States and Mexico!” the President wrote in a tweet. He continued later: “MEXICO HAS AGREED TO IMMEDIATELY BEGIN BUYING LARGE QUANTITIES OF AGRICULTURAL PRODUCT FROM OUR GREAT PATRIOT FARMERS!”
Mexican President Andrés Manuel López Obrador said Saturday that he had a phone call with Trump after negotiators reached a deal Friday.
“I spoke on the telephone with President Trump,” Lopez Obrador tweeted in Spanish on Saturday. “I told him that in Tijuana I would say that I do not lift a clenched fist but an open and frank hand to the president of the United States. We reiterated our disposition to friendship, dialogue and collaboration for the good of our countries.”
Democratic congressional leaders slammed Trump for his attempts to negotiate a deal.
Senate Majority Chuck Schumer jabbed Trump’s repeated return to the issue, tweeting Friday night: “This is an historic night! @realDonaldTrump has announced that he has cut a deal to ‘greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States.’ Now that that problem is solved, I’m sure we won’t be hearing any more about it in the future.”
On Saturday, House Speaker Nancy Pelosi accused Trump in a statement of having “undermined America’s preeminent leadership role in the world by recklessly threatening to impose tariffs on our close friend and neighbor to the south.”
Congress, she said, will hold the White House “accountable for its failures to address the humanitarian situation at our southern border.”

We Should Only Put Tariffs On U.S. Companies Shipping Back To America

We Should Only Put Tariffs On U.S. Companies Shipping Back To America

 

This article is simply just my opinion on the matter of ‘Trade War’s and Tariffs’. I am all for certain tariffs on freight coming into the United States, but not on all freight. I do not claim to be an Economist as my degrees are not in this field. They are only the opinions of one old man who has spent his whole lifetime living here in the States. Now, the reason I say what I do is this, American jobs. I was in the trucking industry for three decades and I witnessed multiple times where companies in the northern states in particular and in Canada who closed up their manufacturing plants and moved them to Mexico because of the costs to operate there was much less. So they would close up their factories here to save money and to increase their profits. It makes sense, good business policy, right? Have you ever noticed that when a company closes up here in the States and opens in another country for cost savings that the prices of their products on our Nation’s retailers shelves do not go down? The simple truth is that in business everything is only about profits, especially if a company is on a Stock Exchange. In my belief, stock exchanges are a death sword to the working people who actually make the products. If a company lays off a bunch of workers or is able to bust a Union, the value of their stock shares goes up. If a company closes their factory and moves it to another country, their stock values go up. These things are simple reality, the truth.

 

I often knock companies like WalMart who import most all of their store products from countries like China. To me, buying from China is the worst thing that we could possibly do as they use that income to create more and better weapons in which to kill the people of the Democratic free world. It is stupid to give them the bullets to kill you and your family with. I do not blame any company for opening a factory in a different country as long as the factory only makes products for that country. Where I strongly disagree is when a company closes here in the States, laying off American workers and then turns around and imports those products back into America for the laid off workers to buy. For an example, if General Motors wants to build a factory in China, India or anywhere else for the purpose of only creating vehicles for that Nation I honestly don’t have a problem with that. We have many car makers here in the U.S. that are based in other nations. Here in the U.S. we have Subaru, Mercedes, BMW, Toyota and Nissan factories which all created good paying jobs for American families. This is more profitable than shipping them here and paying the tarif costs.

 

My thoughts on these tarif wars is quite simple, have free trade flowing between all nations except for what I consider to be treasonous American companies who move elsewhere but wants Americans to buy their products. It is my belief that in every case where American companies have moved away, costing American jobs that those import tariffs should be at 100%. Make it not profitable for any American company to outsource American jobs if they want to sell their products here. This might cause some economic pain in the short term but if these companies are basically forced to reopen or build manufacturing facilities here in the States, in the long term it will be a very good thing for the American people. Also, such an ironclad tariff policy would keep other American companies from following the other traitors paths and moving away also. We have to protect our own jobs, just as any country does, we have to make it unprofitable for any company to screw the people and communities like what has been the norm for so long now.

China to issue white paper on China-US economic, trade talks stance

(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA NEWS AGENCY SHINE)

 

China to issue white paper on China-US economic, trade talks stance

Xinhua

China will issue a white paper about its stance on economic and trade talks with the United States Sunday morning.

The white paper, titled China’s Position on the China-US Economic and Trade Consultations, will be released at 10am on June 2 by the State Council Information Office, which will also hold a press conference.

China: Escalated trade tensions disrupt China’s pork imports from US

(THIS ARTICLE IS COURTESY OF SHANGHAI CHINA’S ‘SHINE’ NEWS NETWORK)

 

Escalated trade tensions disrupt China’s pork imports from US

Xinhua

The escalating trade conflicts have consequently disrupted Chinese pork imports from the United States, according to the Ministry of Commerce.

Chinese companies make their own decisions as to whether to import pork from the US or not, the spokesperson Gao Feng said at a press conference on Thursday.

His comments came as some reports said China recently canceled import order for up to 1,000 tons of US pork.

Gao said there are no other limits or management measures in terms of pork imports except that they have to comply with quarantine standards, and Chinese companies can make their own business decisions and freely trade according to market supply and demand, prices and quality.

China has increased its meat imports since the second half of 2018 partly due to the declines in pig breeding stock and pork output.

Meat imports stood at 1.11 million tons during the first quarter, up 11.6 percent year on year, Gao said, adding that he expects the country will continue to increase meat imports over the rest of the year.

Germany, Spain, the US, Canada, Denmark, Brazil, Netherland and France are among the major sources of China’s pork imports, according to data from Chinese customs.

China’s Communist Party made a flashy graphic to show everyone what it thinks about the trade war

(THIS ARTICLE IS COURTESY OF CNBC AND CHINA’S ‘PEOPLE’S DAILY’ NEWS OUTLET)

 

China’s Communist Party made a flashy graphic to show everyone what it thinks about the trade war

KEY POINTS
  • The People’s Daily, China’s official newspaper for the Communist Party, publishes a post titled “This, is China’s attitude!” on its official WeChat account.
  • The post contains a graphic with three slogans touting the country’s defiant attitude in face of trade tensions with the U.S.
  • The dispute escalated overnight with Beijing retaliating against the latest round of U.S. tariffs on Chinese goods.

The official newspaper for China’s Communist Party published a morale-boosting graphic on Tuesday touting the country’s defiant attitude in the face of trade tensions with the U.S.

“This, is China’s attitude!” the People’s Daily said in the headline of a post on its official WeChat account.

The post contained just one image, with three slogans in gold lettering printed over the red Chinese flag and a picture of shipping containers. CNBC’s translation of the Chinese phrases reads:

“Negotiate, sure!”

“Fight, anytime!”

“Bully us, wishful thinking!”

Trade negotiations between the world’s two largest economies took a negative turn last week. On Friday, the U.S. raised tariffs on $200 billion worth of imported goods from China to 25% from 10%. Beijing responded late Monday local time with tariffs of up to 25% on $60 billion worth of U.S. goods.

China steps up US criticism

(THIS ARTICLE IS COURTESY OF CHINA’S GLOBAL TIMES NEWS NETWORK)

 

China steps up US criticism

By Wang Cong Source:Global Times Published: 2019/5/14 23:13:40

FM pushes back on Washington claims, keeps options open


Photo: VCG

China on Tuesday stepped up criticism of the US as tensions between the world’s largest economies continued to escalate, blaming the US for the renewed escalation that has roiled global financial markets and saying the US has underestimated China’s resolve and ability to defend itself.

As Chinese and US officials continued to exchange harsh words, China needs to be prepared for a protracted war with countermeasures and long-term reform and opening-up efforts, analysts said on Tuesday.

Asked at a routine press briefing about the US threat to impose tariffs on $300 billion in Chinese goods, Geng Shuang, a spokesperson for the Foreign Ministry, did not mince words about China’s plan to fight back.

“When it comes to a trade war, China does not want to fight one or is willing to fight one, but China is also absolutely not afraid to fight one,” Geng said. “If someone has brought the fight to our doorsteps, we will fight to the end.”

Though the spokesperson did not specify measures, China appears to keep options open. Asked about claims in social media that China should stop purchasing US agricultural and energy goods and Boeing airplanes if it retaliates, Geng declined to comment about the report but also stopped short of issuing a denial.

US officials appear to be moving forward with a threat to impose tariffs on $300 billion in Chinese goods. They plan a public hearing on June 17.

China announced it will impose tariffs of between 5 percent and 25 percent on $60 billion in US products starting June 1 in response to the US decision to increase tariffs on $200 billion in Chinese goods.

US miscalculation

China’s retaliation on Monday might have surprised US President Donald Trump and other US officials, who appeared to think that they could use tariffs to pressure China into signing an agreement, according to Wei Jianguo, a former Chinese vice commerce minister.

“I don’t think they thought about China’s will and resolve to defend its core national interests and major concerns, especially at the final stage,” Wei said. “They also haven’t considered China’s ability to stand up to pressure… and the reaction from US [consumers and companies].”

Geng also said that some in the US might have miscalculated the situation, continued to confuse the public, and asked for unreasonably  higher prices. “So we would certainly push back against these claims,” Geng said.

US officials have claimed that China walked back on a “95 percent” done deal and blamed that for the escalation.

Citing previous cases where the US backtracked from deals, Geng said that the US cannot accuse China of walking back from its positions and promises.

Prolonged war

Though both Chinese and US officials left some room for further talks, with Trump publically calling for a meeting with President Xi Jinping at the G20 summit in Japan in June and Chinese officials calling for the US to meet China halfway, no formal plan has been announced so far, leading some to believe this could be a prolonged trade war.

To prepare for a protracted war, analysts said, China must continue to carry out reforms and opening-up measures to boost market vitality and expand overseas markets for Chinese products to reduce reliance on the US market or any other single market.

“The reform and opening-up policy has been a magic key for China to address serious issues over the past 40 years. And a magic key is what we need to deal with the situation now,” said Cao Heping, an economics professor at Peking University, noting that more concrete actions are needed.

China has opened up more sectors to foreign investors, including finance, manufacturing and healthcare, and passed a new Foreign Investment Law to offer greater market access and better protection for foreign firms. It has cracked down on intellectual property rights violations and sought to increase foreign goods.

“The trade war has not changed and will not change China’s pace for further reform and opening-up,” Liu Ying, a research fellow with the Chongyang Institute for Financial Studies at Renmin University of China in Beijing, told the Global Times on Tuesday.

Posted in: DIPLOMACY,ECONOMY