Chinese Foreign Minister Wang Yi addresses the media during a news conference following his meeting with Greek Foreign Minister Nikos Kotzias (not pictured) at the Foreign Ministry in Athens, Greece, April 23, 2017. REUTERS/Michalis Karagiannis
SCMP: US trade gap complaints ‘perplexing’ but China’s door is still open for talks, Wang Yi says
Foreign minister repeats stance that Beijing doesn’t want a trade war
Washington’s complaints about trade imbalances between the US and China are “perplexing” but Beijing’s door remains open for talks, Chinese Foreign Minister Wang Yi said on Monday.
Wang, who is also a State Councillor, added that dialogue should be based on mutual respect while threats and pressure would be “counterproductive”, reiterating that Beijing did not want a trade war with Washington.
“China’s door of dialogue and negotiation remains open, but any dialogue must be based on equality, mutual respect and rules. Any threat or pressure by one side will only be counterproductive,” Wang said during a joint news conference with Britain’s Foreign Secretary Jeremy Hunt in Beijing.
Read more ....
WNU Editor: China's door is not open for trade talks, and what's perplexing to the Chinese foreign minister is not the trade imbalance, but that the U.S. is now doing to China what China has been doing to the U.S. for years. This analysis is correct .... China Is Losing the Trade War With Trump (Donald L. Luskin, WSJ).
Update: This is only going to escalate .... Trade War Casualties: Factories Shifting Out Of China (Kenneth Rapoza, Forbes).
Update #2: Another analysis saying the same thing .... US is winning the trade war, and Chinese growth falling to 5 per cent will be the proof (David Brown, SCMP).
Update #3: I expect the Chinese will be doing this in the coming months, and the trade war will become a currency war with graver consequences .... Should We Expect A Large Chinese Yuan Devaluation? (Seeking Alpha).
Trumps goal has been stated by him over and over since 2015. He wants US manufacturers building in China and shipping to the US to come home...or else.
ReplyDeleteThe economics of heavy manufacturing is changing radically since the advent of US fracking, especially abundant low cost natural gas. This is a distinct cost advantage for the US over China. Then there is robotics. Then there is lots of idled plants and workers all over Trump's fly over country.
See, it all fits together.
if stuff made in Asia for Am were made in America by min wage workers the costs here would still be more than if made in Asia
ReplyDeleteVery true Fred.
ReplyDeleteIt would also mean that 100% of the money stream would stay at home.
There would also be fewer Globalist billionaires who buy politicians that send even more jobs overseas.
I fail to see how either of these results is a bad thing.
~ Anon #87
Fred robotics are leveling the wage gap and the workers we are discussing are Chinas. Cost differentials have shrunk. I’m not saying the USA is the next circa 2001 China but there is opportunity to bring 10s of billions investment back to USA. Lacking free trade with China as we do, courtesy of the WTO ascension deal back in 2001, the USA is free and duty bound to slap tariffs on China imports.
ReplyDeleteAnon @ 7:26,
ReplyDeleteAgreed.
We haven't been leveling tariffs against the Chinese because they own key members of Congress.
McConnell and his wife are at the top of that list.
~ Anon #87
Anon party here :)
ReplyDeleteJust to add to this: I can confirm that factories in my industry have been leaving China. But it's been happening for couple of years at least. Accelerated under Trump,that's true, but we left china because we can get the same products at the same or lower price from Thailand and Vietnam ...and unlike in China our execs aren't sent to mandatory dinners with the Chinese officials.. (And our complaint isn't about the food. .more stuck with a bill type of situation)
This comment has been removed by the author.
ReplyDelete