Kudlow Talks China and Current Trade Negotiations….

National Economic Council Chairman Larry Kudlow appeared on Fox Business earlier Thursday to talk about the ongoing U.S. China trade negotiations. Those who follow the Dragon -vs- Panda strategies of China saw earlier yesterday how Chairman Xi Jinping was positioning N-Korea as leverage for the current trade negotiations.

The DPRK dragon-play didn’t work because President Trump knows the dragon’s moves, and predicted their approach from the outset. Remember, POTUS Trump began executing a geopolitical economic strategy toward both North Korea and China well over a year ago. [During the first meeting with Chairman Xi Jinping in Mar-a-Lago (Feb, 2017)]

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After over a year of discussions and structured way-points, China came into the current round of U.S. trade talks with outstretched steel fists. The line-up they sent to the negotiating table are some of the most loyal and die-hard communist leadership within their economic team.

It is obvious China is in dragon-mode knowing they are dealing with an entirely different administration than they faced before.

According to Reuters China presented an initial offer of $200 billion year-one trade deficit reduction. That’s just flat out narrative nonsense. Apparently the Chinese have spent too much time interpreting Trump through Western media who always focus on “deficit reduction” aspects. That type of approach pitches into Larry Kudlow’s wheelhouse but misses the actual substantive sector-based focus of Trump, Ross, Mnuchin and Lighthizer.

POTUS Trump uses the point of “deficits” because it has a familiar catch with the U.S. audience; however, President Trump knows the real issue is the amount of domestic production -vs- the amount of imported foreign goods. If the Chinese team frame their analytic offers from deficit reduction pitches, the actual deals will never materialize.

President Trump, Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin, U.S. Trade Rep. Robert Lighthizer, and Trade Adviser Peter Navarro are looking at sector by sector trade issues. It is  not simply an import-export equation; it’s about a longer outlook and more balanced and stable manufacturing base.

President Trump is not focused on enhancing interdependency models (deficits), he is looking at expanding independence models sector by sector. Can this sector thrive independent of a need for imported material (raw good, part, service or intellectual property)?

The U.S. goal is for each individual sector (goods or services) not to be necessarily dependent or co-dependent on international import. This America-first approach reduces risk exposure and enhances investment perspectives favorably toward the U.S. by creating long-term economic stability.

Meanwhile, in front of the White House, U.S. Chamber of Commerce President Tom Donohue is riding his bicycle in slow circles and glaring in the windows…

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This entry was posted in China, Communist, Donald Trump, Economy, Japan, media bias, N Korea, President Trump, Secretary Pompeo, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

61 Responses to Kudlow Talks China and Current Trade Negotiations….

  1. wendy forward says:

    That is very cute!

    It’s good to have a good-cop, bad-cop group. But Wilburine is both Wolverine AND Koala!

    Liked by 7 people

    • Cuppa Covfefe says:

      Every time I see that, the old ad “I Hate Qantas” goes through my mind 🙂

      Liked by 1 person

    • RandomAussie says:

      Koalas are actually known over here for being foul-tempered and violent when provoked – make of that what you like! (If you ever visit, be sure to ask the locals about ‘drop bears’…)

      Liked by 1 person

  2. scott467 says:

    “Meanwhile, in front of the White House, U.S. Chamber of Commerce President Tom Donohue is riding his bicycle in slow circles and glaring in the windows…”

    ____________________

    Tommy was born in 1938. Tommy is an addict. His addiction is selling out America for filthy lucre.

    He may not realize it, but this sea change brought about by DJT in our economic model could be the best thing that ever happened to Tommy. This is his opportunity — maybe his last — to get out, and focus his life and spend his time on something besides money and treason, with whatever time he has left.

    This could be a good thing for Tommy, if only he could recognize it.

    But Tommy is an addict.

    Liked by 19 people

  3. noswamp says:

    Good interview by Kudlow although he is a bit too positive for me. I feel that any “proposal” by Beijing must be looked at carefully. Excellent article. Deficits are not the only matrix to be used here. This article correctly highlights this. The Chamber of Commerce folks must be kept outside of the negotiations. We are not negotiating for Google or Amazon, we are negotiating for an America First policy. The Chamber of Commerce folks will be informed once we make an America First decision not before. SD is spot on here. Thank god the lobbyists can’t buy Trump.

    Liked by 8 people

  4. Johnny Bravo says:

    Boy Sundance, do you live in the White House? How do you know so much about this?

    Yours sincerely

    Mr A W E Struck

    Liked by 6 people

  5. dufrst says:

    I wonder if Sundance caught Trump’s comments today on Germany. Again brilliance. He took Germany to task for not contributing to NATO but then expertly weaved in the double whammy of the billions Germany spends on Russian oil & gas! So Germany refuses to spend billions on an alliance that is there to essentially protect Germany from Russia but will spend billions on the resources that make that enemy stronger and thus a bigger threat to the world!

    The boldness of Trump is something to behold! Watch at 2:25 in video:

    Watch the whole thing, it’s Trump at his best, especially his smack down of the EU leaders at the end. MAGA!!

    Liked by 18 people

    • Sylvia Avery says:

      Yowza! PDJT does it again!

      Liked by 11 people

    • daughnworks247 says:

      I saw it today too, stopped me in my tracks. Fist pump to POTUS, we’re so lucky to have him.

      Liked by 10 people

    • Falcon Koch says:

      I noticed the Trump did not mention Germany trading with Iran. It seems he is holding that card in his pocket for now. Also just remember Merkel was raised in Communist Germany.

      Liked by 6 people

      • Falcon, that is what I wanted to add…Merkel has money to support terrorism (Iran) and to support terrorism (“refugees”) inside of her country, but doesn’t have money to pay for the defense of her country…On the other hand, she doesn’t need to pay for defense of something she already gave away. Islam owns her country, not Germans anymore.

        Liked by 2 people

        • Cuppa Covfefe says:

          Yep. And those of us living and paying taxes to Germany are paying for her folly…
          As will our children and grandchildren if something doesn’t change soon…

          But, elections are coming up in Bayern (Bavaria), so it’ll get interesting, especially as the AfD (our Deplorables) are still growing…

          Liked by 3 people

          • Germans are not very bright people, they exterminated their Jews and after loosing the war replaced them with Muslim Turks…Not the same brainpower…I am being a Jew, I don’t feel sorry for them as a nation, because if that nation could be inspired by Hitler’s ideology, that nation deserves to what ever come their way. By the way after USSR fell, lot of Russian Germans moved back to unified Germany, and now many, many of them moving back to Russia, because in Merkel’s Germany there is no place for Germans.

            Liked by 1 person

            • Cuppa Covfefe says:

              Well, then, you’re ignoring a lot of history. And I know Jews who lived here during the war, and Christians (among them, my late father-in-law who was FORCED into the military) who had no idea of what was going on. And without German scientists, “the bomb” would not have been invented in time to do any good…

              The “Gastarbeitern” were not only Turks; far from it. There were Italians, Greeks, Spaniards, Asians, and people from other areas. Of all those groups, only the Turks have failed to integrate. And don’t tell me about the Russlandsdeutsche; I saw it in action, and all the various claims for benefits, etc., being made with sometimes questionable justification. Yes, there was scamming going on there, too. I also saw it with the Vietnamese moving to Silicon Valley in the early 1970s, displacing many Californians there. So no one is innocent, no, not one. Seems to me that Russia hasn’t been all that kind to the Jewish people, either…

              The YSM lies about what happened back then, even as they do now. It’s amazing what some folks will do when they have a gun to their head. Would you be so brave as to die for your beliefs? My late father-in-law paid for his by having his eyes blown out and his nose blown off. He didn’t want to go, but he had no choice.

              And you’re painting with a rather broad brush. Merkel is not directly elected, and the EC (European Commission, the REAL ruling power in Europe) is not elected at all. So saying that the German people want and/or support what is going on is not correct. And I have lived here in Germany for more than 35 years (after 30 years in Kommiefornia), so I know of what (and whom) I speak.

              We the people (the German Deplorables) don’t want Merkel at all. But Martin Schultz is even worse – an atheist and a Marxist. Bearded egg.

              Look up Coudenhove-Kalergi and you’ll see what the EC (and Merkel) are up to. This is the elites, not the German people (or French, for that matter) at “work”. The German Deplorables, the AfD are growing, even still, and there is much dissatisfaction and downright anger at the ECs and Merkel’s policies (yes, the policies come from the European Commission, NOT from Germany). Just read the comments sections on the major dailies (Spiegel, Stern, Focus, Die Welt, etc.) and you’ll see.

              One doesn’t fight bigotry with bigotry…

              Liked by 3 people

      • Now that’s what I call a LEFT HOOK!

        Liked by 1 person

    • Orygun says:

      I was amazed to see that the Secretary General of NATO is a politician that used to have ties to the KGB. A quick look through his history and you wonder how these people get into these positions of authority. He doesn’t think that Muslim refugees taking control and
      destroying the European nations is a problem.

      The one before him was just as bad and was in Hillary’s pocket. Think Benghazi. Good grief! We really are in a mess. Thank you Donald Trump and many others for stepping up to try and fix this complete worldwide mess.

      Liked by 3 people

    • lizzie dw says:

      I think the gas from Russia costs less because it goes a short distance through a pipe and bringing liquified gas from the US to Germany by ship costs more. There would seem to be a mutual interest between Germany and Russia – Germany wants to keep warm and Russia wants to sell gas. So maybe neither country is interested in military action against the other.

      Like

      • dufrst says:

        That would be well and good if Germany would pay it’s fair share to NATO. Germany is not and they are funding Russia on the other end. Germany can certainly get gas from North Africa, the North Sea, Norway, Middle East and the United States. Or frack it themselves or help Poland do so! If it doesn’t want to pay for NATO, don’t turnaround and fund the Russians.

        Liked by 1 person

  6. dufrst says:

    China has to close its trade deficit. It is 60% of total trade between the two countries. It’s almost 75% of the US goods deficit with the world!

    Canada and Mexico have a combined population of 165 million, yet their trade deficits are no greater than 12% of total trade that’s on par by each of them with that of US-China. China has almost 1.3 billion people! Per capita GDP is equal to Mexico’s. China should be running the deficits not the US!

    It’s time for a trade adjustment that create jobs, promote sustainable growth over 3% GDP in US and increase wages. I think it’s a deal that will happen one way or another. Yet another promise made and kept by our leader. MAGA!!

    Liked by 5 people

    • 6x47 says:

      The Chinese model only works because the US has been singularly accommodating of the neo-mercantilist policies that allowed China to funnel American wealth and industrial directly into their country.

      There was a snarky story in some left-wing rag about how China could win the trade war against Trump “in one shot” by cutting the US off from rare earth magnets, an industry wholly owned by China. The story goes on to explain that China cornered the market on rare earth magnets by … purchasing the American company that controlled the market, dismantling the US plant, and moving it to China.

      I’ve seen Chinese companies do this: They buy an American factory, then box up all the equipment in crates the size of a garden shed. Then ship it out, leaving nothing but an empty shell of a building behind.

      The brilliance of our past political leadership on display.

      Liked by 2 people

    • billsv says:

      China is running auto parts into Mexico. Mexico assembles them into assembles and ships duty free into the US under NAFTA. Only one example of the trade issue and NAFTA.

      Liked by 1 person

      • 6x47 says:

        At the time NAFTA was conceived it was intended to counter to the European Union.

        The admission of China to the WTO and the Clinton Administration granting China MFN status radically transformed NAFTA into what it has become.

        Like

  7. Dutchman says:

    Seems to me this is also an approach that A) enables administration to enact gradual changes, so as to minimise harm to American businesses, and ( very importantly) over time, will bring about permanent changes, not easily undone my subsequent administration.
    This is right in VSGDJT’s ‘wheelhouse’, hes got his team, and knows EXACTLY what he’s doing,..and yes, LOVE image of CofC totally shut out! Barstuds who are fighting tooth and nail for MORE open borders.

    Liked by 4 people

  8. Sylvia Avery says:

    “Meanwhile, in front of the White House, U.S. Chamber of Commerce President Tom Donohue is riding his bicycle in slow circles and glaring in the windows…”

    Honestly Sundance. I need TRIGGER WARNINGS. Snort laughing with a mouth full of ice water is not just undignified and messy it is painful. That back of the nose burn is no fun.

    Liked by 9 people

  9. daughnworks247 says:

    Paraphrasing Trump-
    “China has been ‘spoiled’. Europe has been ‘spoiled’. They can call me names, and I would probably call me names too, because that’s not going to happen anymore.”
    He makes me sequel with delight.
    If we get the money right, we can do anything.

    Liked by 7 people

  10. 3%er says:

    What a great feeling it is to know our country is in such capable hands, I seriously had no idea this man would be this good.He will go down at the end of his 8 years as our greatest president. I would vote right now for a lifetime term for our lion. Thank you lord

    Liked by 8 people

  11. KBR says:

    I see a photo. There are six men, all negotiators. Only one is smiling. 😑😑😑😏😁😐

    Liked by 3 people

  12. daughnworks247 says:

    My best girlfriend called me yesterday because she saw the blurb about Navarro being thrown out of the talks, talk about Trudeau, NAFTA, you know…. gossip and all. This is the girlfriend who is so far right she is off the scale, conservative, but was so offended by Trump’s comments, she voted for Bernie in the primary because she knew it would not matter in our state. Now, she is rabidly a Trump supporter.
    SMH.
    I laughed. reminded her of PDJT on the campaign trail. “I don’t blame China, our people who were negotiating were stupid.”
    True, and painfully obvious in a post 2016 election world.
    A year later, we’ve pressured China from 9 different angles to box them in. We talk to Japan, Abe, first, and play golf at Mar-A-Lago. We even cost China a few extra billion in Pakistan and Venezuela (very important Sundance piece on how Trump applied pressure).
    Finally, we send in our guys to talk trade with China, with NK looming in the background.
    PDJT on our guys, “I know them all, the good ones, the bad ones, and the killers. These are not nice people.”, inferring that we want the killers.
    We send in the following people:
    Mnuchin – truly a modern day Machiavelli, thank GOD he is on our side.
    Lighthizer – Have you ever heard him speak? OMG, he is Mulvaney on steroids.
    Wilbur Ross – Who could quietly disembowel an army of giants and the giant would thank him.
    Navarro – the killer, the bomb thrower, the irrational one who will gain us more concessions, cuz if Pete is not happy, Daddy Trump will not be happy.
    Kudlow – to explain it to us all. The suburban mom stereotype to tell us everything is ‘fine’, while the kids are setting fire to the house, just over his shoulder.
    I’m thrilled.
    Finally.
    Oh, and lest we forget, all of these guys are super alpha type males, independently successful in their previous lives, and most of them are multi-billionaires…. which begets a completely different attitude than a Chinese Communist bureaucrat functionary.
    “Well what about Trudeau and NAFTA”, she said.
    Sigh, “Trudeau has socks, we have Trump. What do you think?”, I said. The only thing that can kill is is Congress and their weakness……
    This little DACA deal in Congress is clearly Donahue orchestrated, but Donahue has lost bigly this year. His bicycle has two flat tires.

    Liked by 8 people

  13. KBR says:

    Tom and chauffeur

    Like

  14. A2 says:

    “Scary Statistic: China’s Debt to GDP Ratio Reached 257 Percent in 2017”

    (Excerpt)

    “While a debt blow-up in China is unlikely, risks still lurk in many areas, such as uneven SOE reforms and immature financial markets and institutions. In the end, China must seriously commit to halting a growth model fuelled by a flow of credit, or accept a lower pace of growth that does not require the impossible levels of credit expansion seen in recent years.”

    A circumspect article, but the underlining message is Beijing has a problem. This is an article from 2017. Just background for the above discussion.

    https://nationalinterest.org/blog/the-buzz/scary-statistic-chinas-debt-gdp-ratio-reached-257-percent-22824

    Liked by 2 people

  15. Pyrthroes says:

    As Henry Clay’s classic antebellum “American System” showed, it is possible to foster national peace-and-prosperity without global zero-sum results. Political-economics (to Adam Smith, there is no other) must avoid dirigiste manipulation at all costs, embracing Colbert’s competitive laissez-faire in principle, mixed in practice with dynamic, light-touch mercantilist protection of budding sectors to benefit of all.

    World-class tycoon that he is, this comes instinctively to DJT, whose secret is to state what everybody knows but what few dare to say. Over the next few years, we expect this sui generis septuagenarian to impact not just American but global economic prospects in ways no
    self-dealing, ineffably self-serving Globulist (sic) clerisy conceives.

    Liked by 4 people

  16. obamaclaus says:

    Meanwhile, in front of the White House, U.S. Chamber of Commerce President Tom Donohue is riding his bicycle in slow circles and glaring in the windows…

    Sundance, you always have a way with words. Love that sentence!

    Thank you for keeping us informed of every angle.

    Liked by 6 people

  17. 4harrisonblog says:

    The magnificence of President Trump floors this old redneck. To many he is a SOB but thanks be to God, he is our SOB.

    Like

  18. TheWanderingStar says:

    Kudlow has definitely found his stride with the administration.

    Smart guy – economically and politically.

    Liked by 1 person

  19. Sundance, this is one of your BEST.
    • Sector-by-Sector ECONOMIC INDEPENDENCE!
    • Eliminate Interdependency and Co-Dependency – especially with China!

    Unfortunately, it posted before the Presidential thread:
    • Only 30 comments.
    • A must-see thread.

    Please move it up to the top thread for all to appreciate.

    Liked by 4 people

  20. iwasthere says:

    IMHO Kudlow is doing pretty well at the job. Better that I would have thought. Sounds like he is on the MAGA page now.

    Like

  21. Lindenlee says:

    What is you guys’ take on this ZTE thing?

    Like

  22. Electra says:

    Thanks, Sundance, for the discussion of “interdependence-driven” models vs. “independence- driven models.” It makes a lot of sense; we want a broad-based manufacturing sector that makes us immune to political and military pressures from other countries (I’m looking at you, China).

    Bit by bit, the CTH is helping to chip away at my economic ignorance.

    Like

  23. jeans2nd says:

    What happens should no trade agreement with China be signed?

    The only U.S.-China treaty found is the “Treaty of Wangxia, Treaty of Peace, Amity, and Commerce, with tariff of duties,” signed 1844 ratified 1845, extraterritoriality ended December 1943.

    There is no trade agreement with China https://ustr.gov/trade-agreements/free-trade-agreements

    China has been continously pounding the Western powers since 1920s with China’s definition of “unequal treaty,” in which China argues that China has been exploited by Western extraterritorialism for centuries, while also holding out with China’s emporer’s view that no treaty can be signed as China is superior and all others are supplicants (as you have noted).

    The question remains – what happens should no trade agreement with China be signed?
    That seems most likely, imo.
    Things cannot go on as they are. Something must be done.
    Fresh out of ideas here. halp

    Great post, again, btw. Many thx.

    Like

  24. Fools Gold says:

    “The Dragon behind the Panda mask must be fuming. ”

    How do you say cuss words in Chinese?

    Like

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