U.S. And China Closer To Reaching Trade Deal

alexic

A phone call between trade negotiators on both sides led to an optimistic tone from China on the trade deal's progress.

China has recently announced that trade talks with the U.S. have been going smoothly.

This latest development adds a tone of optimism from Chinese officials that has not been seen recently. Earlier today China’s chief trade negotiator, Liu He, had a phone call with Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. Although the specifics of the call are relatively unknown, the tone of the call was such that there is confidence from China that an incremental trade deal can be reached.

Recently, China’s Community Party issued guidelines that affirm stronger defense of intellectual-property rights. This was a major demand from the U.S. as a requirement towards any negotiations in the trade war.

However, President Donald Trump’s advisors are unsure as to whether it is most political expedient to resolve the trade war before or after the upcoming election cycle. Resolving the trade war would give Trump a win that would bolster markets and further legitimize him as President. However, waiting out until after the 2020 election would allow him to use the trade war as an opportunity to showcase his ability to hold out longer in a showdown.

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Comments (2)
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ScottW
ScottW

Trump's need for a win greatly reduces our leverage with China. Even if a deal is made, it's likely to be much less beneficial than we've been promised, just like the replacement for NAFTA

FrankSterleJr
FrankSterleJr

Somewhat like a mostly conservative political party taking the name Liberal, the Chinese governing Communist party has little to do with true socialism. To me, the only notable characteristic of the People’s Republic of China’s Communist Party, which theoretically is based upon Marxist socialism, that’s truly communist is its governing practice of physically-brutal authoritarian, if not totalitarian, rule over its populace and especially that of Tibet. Almost everything else practiced by China’s government is based upon capitalism, smug wealth and iron fist control. Perhaps a lot of Westerners subconsciously prefer marking China's governance as "communist", however imprecisely, so as to, joined with other visible differences, make the Chinese-mainland collective an easier focus of our capitalist society's contempt? (Frank Sterle Jr.)


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