Trade War with China

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Hendrik_2000

Lieutenant General
In Photo, a ‘Young’ China Sees an Aging U.S. in Retreat
Social media users noticed a distinct age gap between the Chinese delegates and the American lawmakers who met them in Washington.
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May 21, 2018
SHANGHAI — During trade talks in Washington last week, some people in China saw an exorcism of bitter, century-old ghosts.

After Chinese delegates met with American lawmakers on Thursday, a photograph taken from one end of the table circulated on the popular Chinese social media service Weibo. It was shared alongside one from 1901, when representatives from China and colonial powers signed an accord to end the Boxer Rebellion, a violent uprising against foreign influence in China.


In the earlier black-and-white photo from Beijing, the representatives from the West cut a striking contrast with the elderly envoys of the Qing dynasty.

But in the photo from Washington, it is the Americans who appear to be older.

“Over the past 100 years, American officials have gone from young to old, and Chinese officials have gone from old to young,”
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. “This has a lot to do with the current state of the two countries. America today is just as closed off as China was 100 years ago.”

The juxtaposed photos were even shared, at one point, by the official Weibo account of the Communist Youth League. (That post was later deleted.)
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The symbolism is tantalizingly potent. The 1901 accord is regarded in China as a national humiliation, particularly by the Communist Party, which seeks to present itself as having rescued the nation from a century of being pushed around by foreign powers.

One of the Qing court’s representatives in Beijing that day “was so feeble that he had to be lifted out of his chair by two men,” The New York Times
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. The Qing dynasty — China’s last — collapsed not long after.

More recently, China’s rise has created deep tensions with the United States. But after the
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between the two countries, China seems to have emerged well positioned.

The Trump administration has
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, while China has not guaranteed that it will increase purchases of American goods by any specific amount. It also has not committed to curtailing its ambitions to become a technology powerhouse. That might be contributing to the feeling of triumph among Chinese internet users.

The two photos, however, make some inexact comparisons.

In the photo from Washington, the American officials are members of the House Ways and Means Committee, which oversees tax and trade issues. They are not the exact counterparts of the Chinese officials on the left, who included Vice Premier Liu He, the top economic adviser to President Xi Jinping.

And while some members of last week’s Chinese delegation do appear to have fuller heads of hair than the American congressmen, it is not as if the representatives from Beijing had a definitive advantage in terms of youth.

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is 66.
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, Republican of Texas and chairman of the Ways and Means Committee, is 63. The American congressmen who appear most prominently in that day’s photo, however, are
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, Democrat of New Jersey, 81, and
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, Democrat of Michigan, 86.
 

discspinner

Junior Member
Registered Member
The Financial Times today wrote that Liu He refused to come to Washington if the ZTE sanctions were not lifted. It is clear what happened here. There was infighting within the Trump camp. Mnuchin and Kudlow have won, Navarro and Lighthizer have lost. China is giving a face saving way for the US to back down. The question is if this is temporary prior to Trump Kim summit or a more permanent ceasefire.
 

taxiya

Brigadier
Registered Member
ok we dont know the full detail yet, but sound like Trump want China purchase more agriculture and energy, but does that mean China has to purchase more expansive goods compare to other competitor in order to lower the trade deficit.
Not likely. Actually American agriculture product such as Soy bean is cheaper compared with the other two competitors, Brazil and Argentina. But Brazilian and Argentinian soy bean has something (I forget the name) higher than American, meaning better quality. In the end, they are about same.
 

AssassinsMace

Lieutenant General
The reason why no specific details on the deal is because this was all about Trump needing to save face where his tariffs on the world has shaken confidence in the US and world economies as seen in the stock market. No more continuous rise that Trump was gladly taking credit for. Something he did not expect and ignorantly thought the opposite was going to happen. Trump has to spin a win.
 
now I read
China-U.S. economic, trade consensuses "meet interests of the people": vice premier
Xinhua| 2018-05-21 21:33:29
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The consensuses reached during economic and trade consultations between China and the United States meet the interests of the people of the two countries and whole world, Chinese Vice Premier Liu He said on Monday.

Liu, just returned from the United states, referred to the talks as "positive, pragmatic, and productive" with some important consensuses reached.

The vice premier made the remarks while meeting some attendees at the fourth China-U.S. governors' forum.

Liu expressed hope that the two sides would take the forum as an opportunity to further advance all-round pragmatic cooperation at the local level and promote stable and sound development of bilateral ties.

Bill Walker, governor of Alaska and John Sanchez, lieutenant governor of New Mexico, were among attendees at the forum. They told Liu that the whole world is celebrating for the consensuses reached between China and the United States on economic and trade issues.

They pledged to further strengthen cooperation with China in such areas as trade, investment, green development and people-to-people exchanges at the local level, so as to make positive contribution to bilateral ties.

Also Monday, Foreign Ministry spokesperson Lu Kang told a daily news briefing that China expects no further reversals in trade and economic ties with the United States.

"If the governments of the two countries reach a good agreement and results that are acceptable to both, they should stick to the agreement. Of course, we do not want to see any reversal," said Lu.

Based on the experiences of the past four decades, the fundamental reason why both nations have been able to manage disputes has been that the relationship is in the best interest of both countries and their people, he added.

"We hope that the China-U.S. trade and economic relations, which are mutually beneficial and win-win in nature, will play a more effective role," said the spokesperson.
 
now I read
China Focus: China to significantly cut auto import tariffs from July
Xinhua| 2018-05-23 00:49:55
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China will cut import tariffs on vehicles and auto parts from July 1, the Ministry of Finance (MOF) announced Tuesday.

For cars, the 25-percent tariff levied on 135 items and the 20-percent duty on four items will both be cut to 15 percent. The items cover passenger cars and certain trucks.

Import tariffs on 79 auto parts will all be reduced to 6 percent from the current levels of 8-25 percent.

"China safeguards a multilateral trade system. Lowering auto import tariffs is a major step to expand reform and opening-up," the MOF said.

After the cut, the average tariff on vehicles will stand at 13.8 percent, and 6 percent on parts. The new rates are "in line with the reality of the auto industry," the ministry said.

China has 178 tariff items of vehicles in total, with an average tariff rate of 21.5 percent currently. It has 97 items for auto parts, with an average duty of 10.2 percent.

After the tariff cut, China's vehicle import duties will be lower than the average for developing countries.

Take passenger vehicles with nine or fewer seats as an example, the tariff will be reduced to 15 percent, compared with 9.8 percent in the European Union, 8 percent in the Republic of Korea, 60 percent in India and 35 percent in Brazil.

"Whether China will continue to cut auto import tariffs depends on the competitiveness and development of the auto industry," said the ministry.

Cutting auto import tariffs to this degree will help supply-side structural reform and the upgrade of the auto industry, bringing greater quality and efficiency, according to the ministry.

It will also enrich the domestic market and meet the demand for more, affordable consumer experiences. Lower duties will increase demand and bring vitality to the economy.

"By cutting these tariffs, many positive effects will be felt in the global economy," said Liu Shangxi, head of the Chinese Academy of Fiscal Sciences.

The cuts are important for trade liberalization, according to Li Xuhong, a researcher with Beijing National Accounting Institute.

Global auto companies will become more active in the Chinese market, and through trade and investment, China could become one of the world's most competitive auto markets, according to experts.

"The tariff cut will undoubtedly bring more pressure to bear on Chinese brands, but China will not waver in continuing its opening-up policy," said Dong Yang, deputy head of the China Association of Automobile Manufacturers (CAAM).

Dong said domestic auto makers will accelerate transformation and upgrading and grow to grapple with the competition.

"For Chinese consumers, the tariff cuts bring vehicles and services at lower prices," said Xu Haidong, secretary general of the CAAM.

The tariff cut is aimed at increasing competition in the industry to improve its quality and efficiency, and bring car prices down.

However, stressing that tariffs are only one of the factors in car pricing, the ministry said "whether and by how much prices go down are market phenomena."

With lower tariffs, the value-added taxes and consumption taxes on auto imports will decrease accordingly.

In 2017, China produced more than 29 million vehicles and sold 28.88 million, up 3.2 percent and 3 percent respectively, according to the CAAM.

China has remained to be the world's largest auto market in terms of production and sale for nine years. The country imported over 1.2 million vehicles last year.
 
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