Arthur J. Villasanta – Fourth Estate Contributor
Washington, DC, United States (4E) – A high-level delegation of Trump “experts” failed to bully China into accepting punishing and one-sided trade terms, which included China slashing its trade surplus with the U.S. by $200 billion in two years and reducing tariffs to an average of 3.5 percent.
Applying Trump’s art of the deal, which turns out to be nothing more than bullying the other guy, the trade delegation returned home on May 5 having accomplished none of its goals. The American delegation, however, earned the derision of the Chinese for its crude and rude negotiating tactics, which led one high-level Chinese official to insult the Americans as a team of “barking dogs.”
The trade mission included Treasury Secretary Steven Mnuchin; Commerce Secretary Wilbur Ross; U.S. Trade Representative Robert Lighthizer, and senior economic advisers, Larry Kudlow and Peter Navarro.
It wanted China to, among other things, cut its trade surplus with the U.S. by $100 billion in 12 months, and by another $100 billion in the next 12 months; halt all subsidies to advanced manufacturing industries in its Made In China 2025 program; slash tariffs to an average of 3.5 percent from the current average 10 percent; take “immediate, verifiable steps” to halt cyber-spying into commercial networks in America; accept U.S. restrictions on Chinese investments in sensitive technologies and open up its services and agricultural sectors to full American competition. The Americans offered no meaningful concessions in return.
American economists concluded these one-sided demands weren’t designed to get a deal. “The list reads like the terms for a surrender rather than a basis for negotiation,” said Eswar Prasad, a Cornell University economist. The Chinese agreed with this analysis.
Li Daokui, a former member of the monetary policy committee of the People’s Bank of China, told U.S. media the “U.S. side was unfair, unfair, unfair” because all it demanded was “give me this, give me this, give me this.”
“Trump sent out a team of barking dogs,” said Li, who also noted the Chinese negotiators perceived Trump’s hand-picked men “to be overly and unnecessarily aggressive.” For its part, Trump’s men made zero progress in their demands after 30 hours of talks over two days.
“After two days of ‘candid’ trade talks, the U.S. and China are said to have ‘fully exchanged views’ and agreed to talk more,” said economists from UBS Group, the Swiss multinational investment bank. “There is no grand trade agreement.”
UBS noted, however, that “we do not expect all core differences in the US-China trade relationship to be resolved.”
Article – All Rights Reserved.
Provided by FeedSyndicate