China Offered Trump $200 Billion Cut in U.S. Trade Deficit, Official Says

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China has offered President Donald Trump a $200 billion reduction in its annual trade surplus with the U.S. by increasing imports of American products and other steps, said a Trump administration official.

China made the offer during talks in Washington this week as Chinese Vice Premier Liu He visited to try to resolve a trade dispute, the official said, speaking on condition of anonymity. Liu met with Trump Thursday afternoon at the White House. The official didn’t describe the U.S. response.

U.S. officials conveyed the president’s goal for a fair trading relationship with China and the two sides agreed to continue the discussions on Friday, the White House said in a statement. China’s Ministry of Commerce and the State Council Information Office didn’t initially respond to requests for comment.

A $200 billion reduction in the U.S. trade gap with China by 2020 was on a list of demands the Trump administration made earlier this month as Treasury Secretary Steven Mnuchin led a delegation to Beijing. The U.S. merchandise trade deficit with China hit a record $375 billion last year.

The U.S. had earlier made additional demands, including a halt to subsidies and other government support for the Made in China 2025 plan that targets strategic industries from robotics to new-energy vehicles. China had made its own demands, including giving equal treatment to its investment, and warned U.S. companies may be excluded from measures to open its economy.

A deal to cut the deficit, if confirmed, "is good news for market sentiment," said Dariusz Kowalczyk, senior emerging-market strategist at Credit Agricole SA in Hong Kong. "That said, China would suffer pressure on GDP growth as a result and would need to boost domestic demand and debt in the economy through monetary easing and allowing more credit."

The yuan could weaken on the news given expectations for a deterioration of China’s balance of payments, while Chinese government bond yields may come under downward pressure, said Kowalczyk.

The Trump administration has threatened to impose tariffs on as much as $150 billion of Chinese imports to the U.S. as tensions over trade have escalated. Trump expressed doubt before his meeting with Liu that China and the U.S. would come to an agreement to avoid a damaging trade war.

President Has Doubts
“Will that be successful? I tend to doubt it,” Trump said during a press briefing on Thursday with NATO Secretary-General Jens Stoltenberg. “The reason I doubt it is because China’s become very spoiled.”

Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney, said the Chinese proposal is “a positive sign that a full on trade war may be averted.”

“By making a significant offer to the U.S. it indicates that China is taking the negotiations very seriously,” Oliver said. “Much will depend on the details and time period and later in terms of the implementation.”

Reuters reported China’s trade deficit reduction offer earlier.


https://www.bloomberg.com/news/arti...er-trump-200-billion-cut-in-u-s-trade-deficit

More info

https://www.reuters.com/article/us-...u-s-trade-deficit-officials-say-idUSKCN1II1XF


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Now right up front, I’ll start by saying the 200 billion is an eyebrow raising number. However, anything even approaching that number would be a drastic improvement. Hopefully this isn’t a super partisan thread, and we can all hope for some seriously needed improvement in the US China trade deficit.
 
Not many details. Can't analyze- not that many people here including me are even capable of it. Reducing the trade deficit is close to a neutral proposition. Details are everything.
 
Not terribly surprised, China doesn't have as much leverage as people seem to imagine and they are far more dependent on exports (European Union too) where as the US is the most self-sufficient economy in the developed world. They cannot hurt the US without catastrophic damage to themselves and it really was best to get this squared now rather than later. United States has had a large role in facilitating China's rise, going all the way back to the elimination of Imperial Japan as a regional menace.

The biggest reason America even runs a trade deficit with the world at large is due to the dollar's status as the world's reserve currency, not any sort of domestic shortcomings or malicious Chinese practices (not to say there are none). China also can't just "dump" their T-bills to "crash" the US economy if relations ever turned severe. That's utter rubbish.
 
Not many details. Can't analyze- not that many people here including me are even capable of it. Reducing the trade deficit is close to a neutral proposition. Details are everything.

I wish Trump had let ZTE just fail outright and I find the simultaneous reversal of his stance with a Chinese $500 million investment into one of his personal business ventures deeply concerning. If nothing else, it really blew a massive hole into China's alleged burgeoning technological might (and that's something I've even previously banged drums on to a degree). One of their most prominent tech firms has to shut down global operations when faced with the prospect of being barred from acquiring US technology? That drastic? Hmm.
 
Increased imports to China, means more products China can copy, pirate, and forger.
 
The whole ZTE move was a waste of time, if ZTE shuts down thats potentially 1000s of US jobs lost at Qualcomm. Trump needs to do his homework before taking such drastic measures to see how it affects US companies if he goes after a Chinese one. Qualcomm isn't letting Trump potentially make them bankrupt without making a huge stink about it. The Chinese could easily reproduce the components but the tech is patented by Qualcomm.

Mainstream media is not presenting this story with the real details, instead using it as more partisan fuel to the fire.

The resort in Indonesia is only licensed by Trump, they use his name for branding, Trump doesn't own the resort and the licensing deal was made years ago. China didn't pay off Trump at all, if anything they just made it look like they did to distract the US media because they know libs would run with the story, you're all getting played. And Trump tweeted that stupid line about chinese jobs to make it look like he didn't screw up and just wants to save jobs, and it blew up in his face.

As for this recent move, read carefully: CCP states they will give up 200 billion.... By increasing exports. They're not going to hand over a penny, they're just increasing the amount of business they conduct. The only real positive is if China opens its market up more of US goods, but they already consume a massive amount of US goods anyways like Apple and GM.
 
simultaneous reversal of his stance with a Chinese $500 million investment into one of his personal business ventures deeply concerning.
I just read about this. It (allegedly) doesn't fund the things Trump is building but it's still an outrageous conflict of interest. Holy shit.
 
ZTE poses a national security risk independent of any trade talk tensions, and that isn't the American media's story or line for the sake of taking shots at Trump. Qualcomm is very closely tied to the US government with a breadth of various contracts at home including the DoD, they'll live. The chip sets and processors purchased from them by ZTE are 'easily reproducible' (and are manufactured anyway) but the issue for them is moreso performance and costly redesigns they'd have to undertake, on top of the US being their largest market.
 
I just read about this. It (allegedly) doesn't fund the things Trump is building but it's still an outrageous conflict of interest. Holy shit.

Yea, I know about it's supposed 'indirectness' as well (which is hardly something gone unreported either), but it sure as fuck is - with some extraordinary timing to boot.
 
China should publicly apologize for the abysmal quality of harbor freight tools and immediately stop polluting America with them.
 
http://www.businessinsider.com/trum...ons-to-trump-organization-tied-project-2018-5

Pay for Play, Donny is at again.
China gives Trump Org a sweetheart 500 million loan for an Indonesia project.

I would not be elated that 200 billion China is promising because they will get it back on the back end. China watched The House of Saud bribe Trump so they can use our Armed Forces as their Golden Company(Yemen anyone), so China got on the Pay for Play train.
Jared is probably pissed because his billion dollar loan is coming due, he is trying to figure out how to get China to loan him money. Da Kush is having a much harder time getting foreign bribes, because he has been stripped of his power.
 
Increased imports to China, means more products China can copy, pirate, and forger.

7CVV.gif
 
http://www.businessinsider.com/trum...ons-to-trump-organization-tied-project-2018-5

Pay for Play, Donny is at again.
China gives Trump Org a sweetheart 500 million loan for an Indonesia project.

I would not be elated that 200 billion China is promising because they will get it back on the back end. China watched The House of Saud bribe Trump so they can use our Armed Forces as their Golden Company(Yemen anyone), so China got on the Pay for Play train.
Jared is probably pissed because his billion dollar loan is coming due, he is trying to figure out how to get China to loan him money. Da Kush is having a much harder time getting foreign bribes, because he has been stripped of his power.



You’re embarrassing yourself. It’s been debunked in this freaking thread.

Proof you swallow the propaganda willingly, and you don’t even read the content of the thread.
 
You’re embarrassing yourself. It’s been debunked in this freaking thread.

Proof you swallow the propaganda willingly, and you don’t even read the content of the thread.
{<huh}

Where was it debunked, genius?
 
You’re embarrassing yourself. It’s been debunked in this freaking thread.

Proof you swallow the propaganda willingly, and you don’t even read the content of the thread.
I must have missed Giuliani, telling Steve Doucy it is false.

I went back and read this very thread and do not see any debunking of Donny Pay for Play.

Forgot to add another link showing Donny Pay for Play in action.
http://www.scmp.com/news/asia/south...esia-project-latest-stop-chinas-belt-and-road
 
Trump will now reduce US forces in Korea. Nice play China.
 
{<huh}

Where was it debunked, genius?

I think he's referring to Temujin's post? Very knowlegeable guy and great to converse with on a range of topics but I reckon ever so slightly not only selling the ZTE issue short on the whole but also why we have a problem with the Indonesia investment, particularly given the timing. My confidence in this Administration is about less than zero, the greatest thing Trump has yet done was sign the omnibus bill into law because it included the highest inflation-adjusted R&D investment America has ever made, that's irrefutably awesome.

The catch? Trump had virtually zero to do with it and if the White House had gotten their way with the budget proposal they put forth, it would've meant historic cuts towards R&D and peeled back our capabilities in fundamental and applied research. It's absolutely paramount we don't lose the global edge in those areas, this economy - its growth in particular - is largely driven by scientific discovery, technological advancement and its knack for innovation, almost no sector is left untouched. Now is not the time for science cuts of any sort of variety. Thankfully, Congress came together to set that straight.
 
Hey if Trump's trade war somehow ends up benefiting the US, I'll be happy to give him credit. However, the only concrete actions the Chinese have taken is to tax imports on US pork, soybean (which used to be a $14 billion/year purchase by China), and other, mostly mid-western imports. Really targeting Trump's base there, whether intentional or not.

Trump's tariffs are lukewarm and haphazard at best. At the same time we're taxing the shit out of Chinese metals, we're giving access for Chinese tech (almost all IP of which was stolen from US business), to our markets.

Bottom line: China is hitting back, but outside of niche industries, the harm is minimal. But so is Trump's. The tax on Chinese metals was a gift to US donors. So we've hurt some Chinese sectors in order for republican donors to make a profit, and we've had some industries get hurt in the crossfire by Chinese retaliation.

Hardly sound trade policy.
 
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