The two day talks in London ended without any joint statement, no photo ops of a happy ending. Both sides said the talk was productive and an agreement “in principle to a framework” was reached and both sides would bring it home for review and approval by their top leaders. What the statement said is quite clear, just a framework to work with, maybe like both sides were to treat each other on an equal basis, or maybe meeting once a quarter, maybe each will pay their own lunch, what level of representation, nothing else has been agreed on.
From the Chinese side, their term of reference is very simple. No need to agree on anything, no hurry, take all the time needed, hear them out and then come back home. On the American side, try to force the Chinese to close a deal quickly, the sooner the better. The situation in the US is getting bad and getting worse every day. There is an urgency to close the deal for Trump to show off. So, you have a very relax Chinese delegation with no pressure of time for an agreement, very polite and smiling and listening, against the American delegation with orders from Trump to close the deal. And Trump is waiting eagerly in the White House for good news from London, checking his phone repeatedly.
Now it is all over the American media that a deal is done. And Trump is saying that China will be releasing all the rare earths for American industries and for American Military Industrial Complex to make more weapons to start a war with China. And Trump is so happy that he agreed to let Chinese students to continue their studies in the US. In addition, American tariff against China would be raised to 55% against China's 10%.
The Chinese side did not say anything other than the framework. What Trump is saying is that China sent a high level delegation to London to offer sale of rare earths on a silver platter and were grateful that the Americans would let Chinese students to study in America. Trump is so happy with the negotiation and calling it an excellent relationship and thanking the Chinese profusely for the rare earths. Trump is as good as saying the Chinese delegation went home carrying a white flag.
What more is Trump going to spin? Oh, Xi is so happy with Trump's generosity and is inviting him to visit Beijing? The Chinese have forgotten what the negotiation was all about, nothing about chips and all the bans and sanctions imposed by Trump. They are very happy just with the students able to study in the USA.
What do you think?
"President Xi and I are going to work closely together to open up China to American trade," Trump added in a follow-up post. CNA
ReplyDeleteThe deal is all about opening up China for the Americans while America is closed to the Chinese?
Would Xi just put aside the so called deal and forget about the whole thing, just like he forgot to return Trump's call, as if nothing has happened? Time is on China's side and China does not need to close any deal for now. Let Trump and his clowns keep waiting and sweating for as long as is necessary. Maybe by then, there is no need for any deal when America implodes on its own.
ReplyDeleteCorrect, China is in no hurry to stop this tariff war created by US. With the imminent civil war in US, China can afford to wait to see how thing turn out there. Also even if China agree to export it rare earth, it will only send bit & pieces and this will make the US very very toolan..haha
DeleteChina can just wait for Trump to destroy USA. The USA cannot wait for manufacturing to reshore to USA. It needs to restock consumer goods. It needs rare earth for its military industrial complex and manufacturing outfits, especially semiconductors. Fancy China having all the things that the USA yearns for. Who can and cannot wait is clear.
DeleteChina must not forget that unprincipled Trump can always change his mind the next morning after the deal. How can China negotiate and sign a deal with a rascal that would tear up a deal any time he feels like it?
ReplyDeleteDon't forget, the American terrorists are still conniving with countries all over the world to contain, isolate China and preparing a war with China. Is that what Trump meant by excellent relations?
Trump changes his mind like changing his underwear. Provided he does change his underwear regularly, LOL.
DeleteTrump and the USA media are spinning about an agreement being reached when the reality says otherwise. An agreement to have further talks is more likely, not a big, beautiful agreement that Trump is boasting about.
ReplyDeleteDo not be taken aback by Trump's boast about China facing a 55% tariff, while only erecting a 10% tariff against USA imports into China. That sounds like China is caving in. The reality is that whether it is a 30% tariff now, or a 55% tariff going forward, Chinese manufacturers have already been actively found new markets for their products - a 20% increase to ASEAN, with Indonesia taking the cake with a 36% surge. Just a matter of weeks is truly encouraging for Chinese manufacturers. They are brushing aside the USA market for sure.
What is more realistic going forward is whether the 55% tariffs will encourage more Chinese manufacturers to sell once again to retailers in USA or is going to make the position even worse. I would bet on the latter. Which means that there will be more empty shelves in the coming months, with new orders by retailers like Walmart and Target still falling. What is in it for the Trump touting about his win in a 55% tariff against China's 10%? It means little and China is just allowing him to let off hot air to his MAGA base claiming that he is winning.
In the face of Trump spinning as reported on Channel News America, China has not spoken a word about any deal being made, only indicating that there is now a channel for further co-operation with the USA. Nothing about releasing rare earth in abundance or caring to comment about the 55% tariffs. What is there to talk about when China is ready for real decoupling with the USA. Even if the tariffs were to be raised to 1,000%, China cares two hoots.