- US Vs China, bet on the US.
“After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced,” President Trump said.
Washington is moving straight against China after negotiations failed to resolve US complaints over Chinese industrial policies, lack of market access in China and a $375-B trade deficit.
Last Friday, President Trump said he is moving forward with a 25% tariff on $50-B worth of Chinese products, Beijing responded in kind.
“China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology. Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong,” President Trump said.
If China really increases its tariffs again in response to the latest US move, “we will meet that action by pursuing additional tariffs on another $200-B of goods.”
Monday, Secretary of State Mike Pompeo hammed China’s trade practices as “predatory Economics 101” and said statements by Beijing in recent weeks that it was moving to open its economy were “a joke.”
Secretary Pompeo said China’s theft of US IP (intellectual property) “is at an unprecedented level of larceny” and he had raised the issue in talks last week with China’s President Xi Jingping.
China denies US charges that Chinese firms have stolen ideas and software or forced firms to turn over IP as part of the price of doing business in China.
China said it will suspend all previous trade agreements and impose duties on American exports, including Crude Oil.
China has risen to the Top of the list of importers of Crude Oil from the United States.
Secretary Pompeo said excess Chinese steel and aluminum production had flooded the world market and suppressed global prices for the metals, making it hard for American companies to compete.
“This is predatory Economics 101, and many other countries have recognized this,” said Secretary Pompeo, “President Trump is now working to re-shift this balance [back to the US].”
“Chinese leaders over these past few weeks have been claiming openness and globalization, but it’s a joke. Let us be clear: It is the most predatory economic government that operates against the rest of the world today. This is a problem that is long overdue in being tackled.”
To the critics of The Trump Administration’s trade tariffs, Secretary Pompeo said: “Just ask yourself: Would China have allowed America to do to it what China has done to America?”
We have allowed China to expand quickly, now it has to align quickly or face moving back.
America First & MAGA