China is autocratic and can wait out Trump. USA is better off in an honest, win-win negotiations, not Trump's win-lose, zero sum negotiations.
"China’s ‘New Long March’By Therese Shaheen About Therese Shaheen"
June 5, 2019 10:59 AM
https://www.nationalreview.com/2019/06/china-xi-jinping-trade-standoff-new-long-march/
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World
China’s ‘New Long March’
By Therese Shaheen About Therese Shaheen
June 5, 2019 10:59 AM
While American negotiators focus on trade and tariffs, President Xi is preparing his country for a painful economic retreat. The U.S. must plan accordingly.
"The implications of this shift are profound. It threatens one of China’s most powerful perceived assets: $3 trillion in foreign-exchange reserves — including $1 trillion in U.S. Treasury Bonds —and the image it has lent the country as a net creditor to the world. This is about to change. If it does, those reserves will go fast. It is certain the Chinese leaders understand as much, even if it seems not to be too important to American trade negotiators focused on the surplus China has with the United States. Together with the unstable underlying economic conditions of the country, sustained overall trade deficits and the ensuing challenges would justify Xi’s call for a strategic retreat, however difficult it will be."
"China must be careful in riding a nationalist tide towards a trade deal with the US, analysts say"
Change in China’s tone is result of ‘a serious erosion of trust’, says Oxford University specialist
Analysts believe Beijing’s efforts to whip up nationalist sentiment against Washington would signal a shift in trade negotiation strategy
"It's time to gang up on China"
By Richard Boucher, opinion contributor — 06/10/19 10:45 AM EDT
https://thehill.com/opinion/finance/447709-its-time-to-gang-up-on-china
"
With a successful visit to Japan, a reprieve on auto tariffs on Europe and the suspension of steel and aluminum tariffs on Canada and Mexico, the Trump administration laid the groundwork for the proper approach toward a showdown with China: getting our friends in on the action.
The U.S.-China route of bilateral diplomacy has bogged down. The Chinese were prepared to make a trade deal but refused to:
- let the U.S. remain the unilateral judge of Chinese compliance;
- abandon their internet censorship; or
- put their president, Xi Jinping, in a weak position at an uncertain summit because they remember what happened to North Korean leader Kim Jong Un:He was left standing at the altar in Hanoi."
"Outside of China, our Allies remain unconvinced of the threat from Huawei technology but are concerned about the same issues we have with Chinese trade: the power of state-owned enterprises and the theft of technology. "
"In sum, fighting alone hasn’t gotten us very far except for piling pressure on China while our friends yearn for U.S. leadership.
For some, the impasse seems just fine. Indeed, in both Beijing and Washington, there are two camps: trade hawks and strategic hawks.
However, as U.S. negotiators add tariffs and sanctions, they are abetted by hawks pushing to cut China off from U.S. technology, pressure firms to move their supply chains elsewhere and keep Chinese investment away from U.S. soil. In essence, these hawks want to build a wall around China. "
