5/19/2019

A trade deal that is NOT a trade deal


The collapse of the US China trade negotiation is expected. After several months of negotiation, after all the hypes about how good the deal was, how close they were to a deal, it finally broke down. The Americans thought they had the Chinese fooled, that the Chinese were idiots and did not know they were being dragged into a shit hole of Unequal Treaty of the 21st Century by the Americans.

The truth is that the Chinese knew exactly what the Americans were doing and were playing along giving the impression that all was well. And finally when they saw it right to scuttle the nonsensical negotiation, they did the necessary.

The trade negotiation was not about trade, not about buying how much soya beans or American products. It was about American supremacy and how the Americans wanted to treat China as a colony or as a state of the USA. The top agenda was about changing the Chinese economic system. The Americans demanded that China must dismantle all the state owned enterprises, let the enterprises run like American enterprises, free from the state.

According to Bannon, state owned enterprises with state control, state capitalism are bad and China must changed these to the American way of running their economy. The change is good for China and China would benefit and win the economic war. But China is winning the economic war with state owned enterprises and this Chinese economic model is good for China. And this is exactly the opposite in the US when their so called free model is losing. Now why would China want to change its winning formula? Why would China allow the Americans to dictate how it should run its economy and economy system?

Further, the Americans want the Chinese to amend its laws to protect American companies in China, stop state subsidies to state owned enterprises, pay the Chinese workers like American workers, calling Chinese workers as slave workers. They did not know that a Chinese worker can have a meal with two small pieces of meat and rice as against an American worker that needs a pound of meat for each meal. They cannot see the difference in the lifestyle of a Chinese workers and his needs and those of American workers and their needs. By the way, state subsidies is not subsidies per se. It is still added cost to the products, the money must come from somewhere, it is not free money. China cannot continue to subsidise its state owned enterprises without breaking its own piggy banks. It is productivity that matters.

They wanted American companies to operate in China and free from Chinese control and do what they want. They want to enter Chinese market and make their monies and no technology transfer. They accused China of forcing the companies to give up their technologies. The companies can always go elsewhere, no need to go to China, no need to share or be forced to share their technology.

Worse, they told the Chinese to stop Made in China 2025, ie China cannot pursue technological advancement to be better than the Americans. Can you believe it?

Basically the trade negotiation was never about trade but about changing the Chinese economic and political system, that China must be a democracy like the Americans, and also to suppress China from becoming an advanced technology country.

Why would China want to let the Americans to dictate what and how it should manage its economy and enterprises? The Americans were interfering in the domestic affairs and laws of China. And they expect the Chinese to say yes and agree with an Unequal Treaty where the Americans make all the demands and the Chinese must comply?
The few trade related matters include China buying American produces at American prices, eg soya beans, meat and poultry and at huge volumes in excess of what China needs, thus killing Chinese farmers and meat producers. 

The Americans also demanded China to buy in monetary terms, US$200b of American products, products that the Americans want to sell but the Chinese do not need, but not high tech products that the Chinese want but the Americans did not want to sell.

The trade negotiation was in all ways a political memorandum which the Chinese should surrender their national sovereignty to the Americans, an Unequal Treaty imposed on the Chinese in the 21st Century.  In no ways would China agree and accept such a roguish and one sided agreement against their national interest. The trade negotiation is certain to fail until and unless the Americans are willing to negotiate a trade deal on equal basis. Until then, all the time and resources over the last few months are as good as wasted, a non starter.

The Chinese want a trade deal, the Americans want a political agreement to be the master of China.  In the words of Bannon, it is an armistice, a surrender document to acknowledge the US as the Empire and China as a colony.  Fail it should be.

12 comments:

Anonymous said...

RB, I was at first shock that China agreed to USA demand. Lucky they did not. Those dudes that spread the Rumours need to be sodomized as other anons said.

Virgo49 said...

Aiyo. Cannot compete because of your own businesses inabilities, you want others to dismantle theirs and follow yours to the graves.

Whether State sponsored business or otherwise is their business. Why don't you also follow their business ideas.

White Scoundrels cannot compete started fouling on Others on their terms.

Madness.

Anonymous said...

In no ways would China agree and accept such a roguish and one sided agreement against their national interest.
RB

That is also because China can afford not to agree and accept lah.

But for Sinkies, can they afford not to vote and accept PAP as govt, despite PAP screwing them and against their interest?

Anonymous said...

Now why would China want to change its winning formula? Why would China allow the Americans to dictate how it should run its economy and economy system?
RB

Now why would PAP want to change its winning formula? Why would PAP allow Sinkies to dictate how it should run its economy and economy system?

Anonymous said...

The Americans demanded that China must dismantle all the state owned enterprises, let the enterprises run like American enterprises, free from the state.
Rb

The Americans can demand whatever they want lah, but China of course will not agree lah.

The Sinkie opposition can contest whatever number of seats they want lah, but majority Sinkies will not vote for them lah. And for Chee Soon Juan, not even voting for him in a by election.

Anonymous said...

In a word, they want China to be under the US thumb and be dictated to. like Japan, South Korea and EU. The evil empire is now so desperate, it is using all ways and means to keep China down. It is even threatening it's poodles to put their interest behind the agenda of the US. Many are trying to distance themselves from the clutches of the US.

That the Chinese communist state-controlled economic system could be so successful, must have struck a nerve in the so called democratic economic system of the West, where big Jewish bankers called all the shots.

That is not to be tolerated by the white proponents of democracy. How could China with it's economic system, developed under communism, surpass the democratic economic system of the West? What would the rest of the world think after all the decades of propagating how bad communism is and how good the democratic system can be.

After decades of shouting and hoping for the collapse of China economically, it did not happen. On the contrary the economic system of the US resulted in trillions of dollars of debts with no avenue for repayment. Added to that are the quadrillions of derivatives floating in the air that cannot possibly be unwound.

Like the North Korean issue, the trade talks between China and US will never come to any fruitful end, so long as the evil empire makes ridiculous demands and forced unsavoury concessions from the opposing party.

Anonymous said...

To summarize in one word of US-China trade deal - " I order u ...do tiss and tat" by the order of Captain Americuns.
China's response - " Nay...r u kidding me? ..u all go fly kite la?"

Anonymous said...

@ Virgo49 May 19, 2019 1:01 pm
//Aiyo. Cannot compete because of your own businesses inabilities, you want others to dismantle theirs and follow yours to the graves.

Whether State sponsored business or otherwise is their business. Why don't you also follow their business ideas.

White Scoundrels cannot compete started fouling on Others on their terms.

Madness.//


Virgo 49,

In soccer, sometimes when opposing team cannot stop a prolific scorer, they will pull out all stops to foul and hack down the star striker until he is crippled or leg broken?


Part 1:
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Under the Obama Administration in early 2009 at the height of the GFC (Global Financial Crisis), as part of the pretext of stimulating the economy via increase in fiscal spending, more than US$500 billions were splashed on subsidies for R&D technology on the mining of shale oil?

By the end of last year (2018), the Americunt shale oil production CAPACITY has reached near 15 million bpd?

In other words, the entire Americunt economy's oil requirement will likely NOT be affected by any global SUPPLY SHOCK?

In fact, the Americunt elites, rich investors in shale oil mining industry, shale oil mine owners and the entire shale oil mining industry as well as the usual "BFF" in the finance sector will very likely STAND to BENEFIT humongously at the expense of consumers and other businesses if there is any GLOBAL OIL SUPPLY SHOCK in the event of a major military conflict in the Middle East (ME) especially if it involves the MAJOR oil producing countries such as the Arab Kingdom and Iran?

Since the beginning of the oil price decline in Jun 2014 from a height of abt USD115 per barrel to a low of USD27 per barrel in Feb 2016 and at the current price of abt USD60+ per barrel, the Saudi Kingdom has seen its foreign reserves depleted from abt USD800 billions to the current USD500 billions?

About 40% of global LNG and at least 20% of oil supply passes through the Strait of Hormuz, which by land is bounded and lies between the south eastern tip of the arabia peninsula and south western part of Iran. By sea, the Strait of Hormuz lies between the Persian Gulf (PG) and the Gulf of Oman (GO).

Supply flow can easily be choked at this extremely strategic sealane due to its narrow passages between the PG and the GO?

Potentially up to 30% of the Chinese economy might grind to a halt once its oil stockpile is depleted if oil supply from the ME Gulf region is severely affected or disrupted?

Fossil fuel prices including oil prices could shoot through the roof in such an event if a supply shock materialises?

China economy could suffer multiple whammy (雪上加霜) on top of the ongoing US-China trade war?

Supposedly up to 80% of the Chinese oil supply comes from the ME region?

It is a no-brainer who wins and who loses in such a (man-made) conflict (if any) in the ME?

The potential impact on 伟大的祖国真的让人堪忧啊 :(

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Strategically and geo-politically how can Russia (and China) not be drawn in if a conflict escalates?

Collaterally, some small adjacent ME states such as Oman and UAE might directly 遭到池鱼之殃?

Ⓜatilah $ingapura⚠️ said...

Goddamn. Last 4 articles on this blog are "signals" that War Stocks are going to do even better. Better load up on some in the ol retirement account!

Keep on rattling those sabers boys. 🤑

Anonymous said...

Expecting China to barter away issues of principle and its core interests is doomed to be the biggest strategic misjudgment for the US.

For China-US trade negotiations, China shows its sincerity and is reasonable in the process. What’s more, China will defend its dignity and never be afraid of any country making unreasonable requests.

If the US regards China’s sincerity as “being weak”, and therefore thinks that it can take anything it wants from China, changes the number of its trade volume with China regardless of their agreement and facts, constantly raises unreasonable demands against China’s core interests, or even acts arrogantly and adopts bullying practices in the wording of an agreement text, it acts will certainly be opposed.

China has no intention to change or displace the US, while the US cannot expect to dictate to China or impede the latter’s development. On issues concerning its core interests, China will not make the slightest concession to the US.

The deal-making tactic of extreme pressure is doomed to not work for China that had endured so much in the past. The salami-slice strategy in negotiations is only one-sided wish. And the ulterior motives to contain China are nothing more than wishful thinking for the Chinese nation on a journey toward the great rejuvenation.

The unequal treaties that were imposed on China by foreign powers are still fresh in our memory. Since 1840, a series of unequal treaties had inflicted untold sufferings to the Chinese people. This is why the Communist Party of China, since its founding, had given priority to abolishing the unequal treaties, which were completely abolished after the founding of the People’s Republic of China (PRC).

Today, the Chinese nation has embarked on a journey toward the great rejuvenation. Any attempt to force China to sign an unequal treaty is not only an extreme ignorance of the modern history of China, but also a great provocation against the Chinese people.

This year marks the 70th anniversary of the founding of the PRC. Looking back, this momentous journey has given us many valuable inspirations. An important one is that China has followed a right path of socialism with Chinese characteristics, and reform and opening up is the only way to uphold and develop socialism with Chinese characteristics.

China has kept its door open for trade talks and international exchanges, and kept to its principles and bottom line. The Chinese people will not be swayed from the path of socialism with Chinese characteristics, nor can anyone stop them from realizing the great rejuvenation of the Chinese nation.

Anonymous said...

The 150 years of humiliation by western powers must never be forgotten. This bitter experience collectively dished out by 13 nations (including Japan and Russia) must be collectively remembered and used as a lesson to never allow it to happen again.

Anonymous said...

1.43pm, don't ask stupid questions lar unless u wanted or need to be sodomized to becoming rational again. Otherwise very irritating questions leh.