Skip to main content

Trade war, day 69: More talks proposed, but no signs of structural change

Supchina.com


The U.S. Treasury Department, led by Steven Mnuchin, is again attempting to find a deal with China on trade.

“The Trump administration is reaching out to China for a new high-level round of trade talks, in an effort to give Beijing another opportunity to address U.S. concerns before it imposes new tariffs on Chinese imports, said people briefed on the matter,” the Wall Street Journal reports(paywall).The Journal says that “President Trump has authorized Mr. Mnuchin to try to get trade talks with Beijing back on track,” and that Mnuchin is joined by chief economic adviser Larry Kudlow in his intention to find “a near-term settlement out of concerns that a protracted battle with China could batter financial markets.”But “the U.S. trade representative’s office headed by Robert Lighthizer, which is in charge of tariffs, wants to hold off on negotiations, arguing that additional levies would give the U.S. more bargaining power in the dispute.”The invitation by Mnuchin to his counterpart, Liu He, was confirmed(paywall) by Bloomberg, which noted that this would be the fifth time that Trump administration officials have formally sat down with Chinese counterparts to discuss trade.

The Journal then reported (paywall) that stocks rose in response to its report — the Dow added “170 points, or 0.6%” — including that “trade-sensitive industrial and materials stocks rallied on the latest signs that the U.S. is willing to compromise on trade.”

But the U.S. is not necessarily expressing willingness to compromise here — it is instead, in the Journal’s own words, “an effort to give Beijing another opportunity to address U.S. concerns before it imposes new tariffs on Chinese imports.”The last time that Steven Mnuchin and Liu He directly negotiated, back in May, it ended in spectacular failure, leading to deep grievances on both sides.That’s because China failed to address core American complaints about Chinese economic practices: alleged IP theft, coerced technology transfer, Chinese market protectionism, and state-heavy economic development, exemplified by the Made in China 2025 initiative.

The Made in China 2025 initiative is not slowing down, according to the South China Morning Post:

State-owned enterprises — exactly the part of China’s economy that Washington considers most suspect in conducting unfair economic practices — will feature prominently in an upcoming conference due to convene sometime in late September in Beijing, the SCMP reports.At that unnamed conference, Liu He is expected to urge SOEs to “‘make breakthroughs in key aspects’ of cutting-edge technologies and call on them to ‘take a leading role at the front’ of the country’s drive to make technological progress” — aka the Made in China 2025 initiative.

These structural factors — American brinkmanship and disunity in the Trump administration, and unchanged Chinese economic practices with regards to Made in China 2025 — seem likely to sink any further round of negotiations in the near future. For more news and analysis on the trade war, please click through to SupChina.

Comments

Popular posts from this blog

Balochistan to establish first medical university

https://www.dawn.com/news/1366135

The Newspaper's Staff CorrespondentOctober 25, 2017QUETTA: The provincial cabinet on Tuesday approved the draft for establishing a medical university in Balochistan.Health minister Mir Rehmat Saleh Baloch made the announcement while speaking at a press conference after a cabinet meeting.“The cabinet has approved the draft of the medical university which would be presented in the current session of the Balochistan Assembly,” he said, adding with the assembly’s approval the Bolan Medical College would be converted into a medical university.Published in Dawn, October 25th, 2017

CPEC Jobs in Pakistan, salary details

JOBS...نوکریاں چائنہ کمپنی میںPlease help the deserving persons...Salary:Salary package in China–Pakistan Economic Corridor (CPEC) in these 300,000 jobs shall be on daily wages. The details of the daily wages are as follows;Welder: Rs. 1,700 dailyHeavy Duty Driver: Rs. 1,700 dailyMason: Rs. 1,500 dailyHelper: Rs. 850 dailyElectrician: Rs. 1,700 dailySurveyor: Rs. 2,500 dailySecurity Guard: Rs. 1,600 dailyBulldozer operator: Rs. 2,200 dailyConcrete mixer machine operator: Rs. 2,000 dailyRoller operator: Rs. 2,000 dailySteel fixer: Rs. 2,200 dailyIron Shuttering fixer: Rs. 1,800 dailyAccount clerk: Rs. 2,200 dailyCarpenter: Rs. 1,700 dailyLight duty driver: Rs. 1,700 dailyLabour: Rs. 900 dailyPara Engine mechanic: Rs. 1,700 dailyPipe fitter: Rs. 1,700 dailyStorekeeper: Rs. 1,700 dailyOffice boy: Rs. 1,200 dailyExcavator operator: Rs. 2,200 dailyShovel operator: Rs. 2,200 dailyComputer operator: Rs. 2,200 dailySecurity Supervisor: Rs. 2,200 dailyCook for Chinese food: Rs. 2,000 dailyCook…

Germany’s Siemens sets up Belt and Road office in Beijing

https://gbtimes.com/germanys-siemens-sets-up-belt-and-road-office-in-beijing
Germany’s Siemens sets up Belt and Road office in Beijingby Janne Suokas Mar 23, 2018 15:20 TRADEINVESTMENTBELT AND ROAD INITIATIVEGerman industrial and engineering group Siemens will set up a Belt and Road office in Beijing. surberFlickrCC BY 2.0
German industrial and engineering group Siemens will set up an office in Beijing to boost international cooperation under China’s Belt and Road initiative, the company said on Friday.The move will help strengthen Siemens’ cooperation with Chinese and international companies and expand business opportunities brought about by the Belt and Road initiative, according to the company’s statement.The Belt and Road initiative is China’s ambitious project to boost trade and infrastructure investment in more than 65 countries along the ancient Silk Road trade routes from Asia to Europe and Africa.Siemens said it had already partnered with hundreds of Chinese companies in overse…