Trump's refusal to discuss new terms of trade agreement with China reveals: Washington is groping for a new policy of confrontation with Beijing. About it FBA “economy today” said the chief researcher at the Institute of the USA and Canada of the Russian Academy of Sciences Vladimir Vasiliev.
Washington is not interested in discussing new terms of bilateral trade agreement with China, US President Donald Trump said. American leader said, what he “dissatisfied with China” while Beijing asks to soften the terms of the deal due to the coronavirus pandemic and losses, which she brought to an Asian country. Initially, the Chinese authorities made significant mortars in the agreement., agreeing to purchase raw materials and goods from the States, to align the trade balance.
“We signed a deal. I heard about it too. They would like to review a trade deal, to make her conditions better for herself. No, I am not interested. Let's see, do they fulfill the agreement, which they themselves signed”, – said Trump. And he added,, that China had to crush the coronavirus “in the bud”, so that he does not go into a pandemic.
“We see, how top US political leadership makes countering China a priority in foreign policy, adding economics to this course, – notes Vasiliev. - Because of that, how trade counteraction of the USA and the PRC will develop, a lot will depend. After all, according to official figures, from January to April, the surplus in trade with the US in favor of China amounted to $20 billion. And in trade with the whole world, China turned out to be a plus on $80 billion.
At the same time, IMF studies show: all Western countries this year will show a serious economic downturn in 5-6%, while China will show growth in 1,2%. The most important conclusion: direct trade and economic war with China will bring significant losses for the US. Trump, as a financier and businessman, is looking for other ways to attack China. In particular, reduce the investment attractiveness of the Chinese economy”.
Trump is dishonestly playing with China
“China has taken advantage of the United States for many years”, – said Trump. Having received the presidency, American businessman devoted much of his time in power to unleashing trade wars around the world, first of all - with China. Washington and Beijing impose multiple duties on mutual trade, getting the best bargaining position. As a result, an agreement was signed, but trump still shows his displeasure.
On the other hand, China today announced, which will cancel additional duties on part of US imports with 19 May. This list includes 79 positions, as explained by the Ministry of Finance of the PRC. However, in response, Trump forbade US federal pension funds to invest in shares of Chinese companies. And ordered to withdraw already placed assets – currently make up $4 billion. The White House National Economic Council called this situation “risky and unjustified”.
“In these realities, a new game is quite visible., that the states start with China. China is now in an economically stronger position, than America - Washington has no significant leverage on China. This means, Trump changes tactics. In the near future, the US administration will clearly prepare an intelligence report on the damage due to coronavirus and formulate the amount of financial claims for China. We remember, what trump promised “punish the PRC” for the epidemic.
And then, the States will develop a policy to reduce the investment attractiveness of the Chinese economy. That is, it will try to create “exclusion zone” around the PRC and state, what is it “toxic asset”, that is not the best investment option. Washington will also try to limit as much as possible the presence of Chinese companies in American territory. That is, we see the transfer of a trade war to a new, safer phase for the USA”, – Americanist emphasizes.
U.S. unhappy with bargain
The ceremony of signing the agreement on the first phase of the trade deal between the USA and China took place 15 January in Washington. Trump and Chinese Vice Premier Liu He put their signatures on the document. China agreed to increase purchases of US products by $76,7 billion in the first year and on $123,3 billion for the second year of the agreement. It's not just about agricultural products, but also about other american goods.
Washington now daily accuses China of concealing information about the origin of the virus and the extent of the epidemic. Beijing, in turn, regretted, what “some politicians use the virus situation to defame China”. Coronavirus pandemic begins in China, but the United States remains the most affected country with the highest number of sick and dead. Secretary of State Mike Pompeo suggested, what the virus could “run away” from the laboratory in Wuhan.
“We see, that the US economy is sliding deeper into recession, and Washington wants to reduce US business cooperation with China, so that they pay attention to the domestic economy. At the same time, Washington “feels” stock market reaction. Any sanctions statement crashes US company indices. States Seek Opportunity to Tighten PRC Policy Without Prejudice.
Stock markets respond clearly to events. After all, if relations between the United States and China will improve, then the entire global economy will begin to grow. Deterioration will bring down, including, and american enterprises. At the same time, Trump's economic advisers are clearly dissuading him from a trade war.. But political ambitions do not allow the American president to leave China unpunished. US citizens and the economy may become victims of this policy.”, – concludes Vladimir Vasiliev.
Max Boot
