China trade: Xi warns against ‘Cold War mentality’

April 10 23:00 2018

United States President Donald Trump on Monday blamed Chinese government for imposing higher taxes on the import of automobiles and called it stupid trade. China reported a global trade surplus of $423 billion a year ago – about two-thirds of that with the United States.

China has already reiterated it will not negotiate and make concessions under external pressure (“China says it never backs down in the face of threats after trade salvos with U.S.”, Reuters, April 4).

Regardless, Trump said that he and Chinese President Xi Jinping “will always be friends, no matter what happens with our dispute on trade”.

“It is really not so much about trade as about China’s rise as a technology power and USA efforts to contain this rise and prevent China from dominating key sectors going forward”, Paul Triolo, practice head for geotechnology at consulting firm Eurasia Group, said in an email.

The Trump administration has said it is taking action as a crackdown on China’s theft of US intellectual property. -China relations, the Executive Summit will examine challenges in both countries and explore opportunities for American and Chinese businesses to work together.

US policymakers have questioned nearly every aspect of China’s economic model, which is in turn deeply embedded in the country’s social and political system. The new tariffs China is proposing on soybeans and other USA goods is a prime example. This has triggered a trade war between the two countries.

But investors and traders are probably underestimating the difficulty of the negotiations and the risk the United States and China could drift into a damaging confrontation by accident.

Xi didn’t mention Trump or the United States in his speech but advocated for solving trade disagreements with other countries through dialogue, according to CNN.

And for the Exchange of Notes on the construction of the Jamestown Fishing Port Complex, China will provide an amount of U.S. $ 50 million.

China’s state media has sharply criticized the United States, saying its trade protectionism actions will end in defeat. It characterized those tariffs as a penalty for Beijing’s forcing American companies to hand over technology to gain entry to China’s market. “And they have really done a number on this country”, Trump said during the meeting at the White House.

Updating his Cabinet colleagues on trade negotiations, Trump yesterday said the NAFTA (North American Free Trade Agreement) deal, now being renegotiated with Canada and Mexico, was a disgusting one.

So it’s hard to see just how much more access China will give foreign firms in reality. The president has long talked up his friendship with Xi, whom he has praised for consolidating power in China despite its limits on democratic reforms. The U.S. plans to apply those tariffs to almost $50 billion worth of goods that include software and other technologies, but they could prove costly for Trump’s anti-theft agenda in the long run. I don’t expect there will be a trade war.

Near-term soybean shipments from Brazil peaked near 200 cents above CBOT May soybean futures SK8 before pulling back to around 170 cents over by the end of the week, traders said.

He said it was in China’s own interest to have an open economy, and that trade is good for everyone, he significantly acknowledged the intention to lower tariffs for some industries.

Meanwhile, since 2001, under the Bush and Obama presidencies, the U.S. economy lost more than 60,000 factories and millions of manufacturing jobs. The official said that the USA was expecting China to put concrete proposals forward.

His speech at the Boao Forum for Asia – often referred to as Asia’s Davos – appears to be an attempt to calm a trade row with the US.

No one will win in a US-China trade war

China trade: Xi warns against ‘Cold War mentality’
 
 
  Categories:
 
write a comment

0 Comments

No Comments Yet!

You can be the one to start a conversation.

Add a Comment

CAPTCHA image
*