Joint U.S. – China Statement After Two Days of Trade Negotiations…

The White House has released a “Joint Statement of the United States and China Regarding Trade Consultations“:

“At the direction of President Donald J. Trump and President Xi Jinping, on May 17 and 18, 2018, the United States and China engaged in constructive consultations regarding trade in Washington, D.C. The United States delegation included Secretary of the Treasury Steven T. Mnuchin, Secretary of Commerce Wilbur L. Ross, and United States Trade Representative Robert E. Lighthizer. The Chinese delegation was led by State Council Vice Premier Liu He, Special Envoy of President Xi.”

“There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China. To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services. This will help support growth and employment in the United States.”

“Both sides agreed on meaningful increases in United States agriculture and energy exports. The United States will send a team to China to work out the details.

The delegations also discussed expanding trade in manufactured goods and services. There was consensus on the need to create favorable conditions to increase trade in these areas.

Both sides attach paramount importance to intellectual property protections, and agreed to strengthen cooperation. China will advance relevant amendments to its laws and regulations in this area, including the Patent Law.

Both sides agreed to encourage two-way investment and to strive to create a fair, level playing field for competition.

Both sides agreed to continue to engage at high levels on these issues and to seek to resolve their economic and trade concerns in a proactive manner.”

[Statement Link]

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This entry was posted in ASEAN, China, Economy, N Korea, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

190 Responses to Joint U.S. – China Statement After Two Days of Trade Negotiations…

  1. BooKemDannO says:

    WINNING!!

    Liked by 21 people

    • kenji says:

      Everyday, and in every way … FASTER … than any President in my lifetime! BEST vote I EVER cast in my entire life. Thank you Democraps! Thank you for running HER toxic wasteland of a campaign. Thank you Democraps! For allowing HER world-tour of bitter retribution! Keep it up! Keep denigrating each and every non-hyphenated American CITIZEN!

      President Trump … we have SO got your back. FORWARD !!

      Liked by 30 people

    • Grandma Covfefe says:

      Yes, winning!!—-Boom Boom Boom at the speed of light.

      President Trump and his MAGA Team are the best!

      Liked by 6 people

    • Bud Klatsch says:

      OMG, let it be true, but trust and verify!

      Liked by 5 people

    • Jedi9 says:

      Yeah I am not so fast to be celebrating just yet! Knowing the Chinese and their deceptive practices I remain skeptical! This on face value seems all good, but there needs to be more transparency on the details!

      What will be more interesting is how the NAFTA deal unfolds! I will be a bigger believer more so if the US announces its withdrawal from the agreement as this ties into China and their nefarious business practices!

      Liked by 7 people

  2. HBD says:

    We’ll see. My money is on the Trump team.

    Liked by 19 people

    • konradwp1 says:

      My money is on both China and the US.

      A trade deficit of $800 billion a year can’t continue. Wolverine Ross won’t stand for that. In this context the deal Trump is offering is win-win*.

      The issue is now not if, but how, the trade deficit ends and how that end impacts China. There are easy ways and there are hard ways. China has chosen the easy way with no massive sanctions and economic disruption.

      The price for the easy way? The price for Trump offering a slower end to the trade deficit? China has to give up on their “bulldog on a chain” (AKA North Korea). No more nukes and missiles for NK.

      *Actually win-win-win-win. While China may give up the threat of violence from their vassal state NK as a political lever, China, North Korea, South Korea and the US will all economically benefit from investment in the modernisation and development of a peaceful North Korea.

      Liked by 11 people

      • Steve Herman says:

        I truly wish the best for the Nork people. Kim dynasty can prosper w its people or rot and dissolve over time, either is fine w me. Big Stipulation is TRUST BUT VERIFY.

        Liked by 6 people

      • scott467 says:

        “The price for the easy way? The price for Trump offering a slower end to the trade deficit? China has to give up on their “bulldog on a chain” (AKA North Korea). No more nukes and missiles for NK. ”

        ___________________

        But if that is REALLY all NK ever was, and DJT knew it, then there was no credible nuclear threat from NK, it was just China all along.

        So why give up so much to remove the non-threat threat?

        Much easier (requires no cooperation) and much cheaper (requires no concessions) to just expose the Wizard behind the NK curtain.

        De-pants him.

        Now someone might say ‘that’s not very nice’.

        China is not very nice, and it’s not very nice to threaten the entire world with nuclear disaster.

        So de-pants the Panda.

        Like

        • Maquis says:

          It was never a non-threat Scott. Simply one China could wield with impunity and deniability. Until Trump.

          Liked by 8 people

        • Rhoda R says:

          Also, it isn’t a good strategy in the long run to rub someone’s nose in their failure/weaknesses – it tends to come around and bite you in the future – see the Versailles Treaty.

          Liked by 1 person

        • konradwp1 says:

          So why give up so much to remove the non-threat threat?

          The problem was even though China has NK on a chain, that chain necessarily had to have some slack in it for NK to be a credible bulldog. There had to be a potential bite to go with that bark. NK was a threat.

          In the past that potential bite was NK’s large conventional forces. But modern conventional military technology available to the US and South Korea had largely negated the NK 50’s era conventional military power. To be a credible threat, China needed to allow NK to get nukes (not too many, not too powerful) and long range missiles (not too long range).

          But Kim Jong Un, raised as a spoilt bully, became leader. Like a rebellious teenager, he started to fight with his Chinese controllers. He knew he was being used as a tool in China’s push and shove with the US and resented it. China kept the chain as short as they could, only supplying missile avionics on a per test basis and not assisting the transition from atomic to thermonuclear weapons. But Kim Jong Un continued his disobedience.

          What has happened here is NK stopped being a political asset for China and started becoming a major liability. Modifying submarines to carry ballistic missiles? Using Chinese avionics in NK development of ICBMs (and trying to hide it with demolition charges on stages that could splash down and be recovered)? Way too much slack in the chain for China’s liking.

          In April 2017 President Donald Trump meets Chinese President Xi Jinping. Everything changes. Within days NK coal ships are being turned away from Chinese ports, even local village trade across the NK/China border is shut down and China for the first time begins to comply with agreed international sanctions for NK.

          Kim Jong Un flies into a rage with Trump’s tweets goading him on:
          “China should no longer try to test the limits of the DPRK’s patience,” the North Korean commentary said. “China had better ponder over the grave consequences to be entailed by its reckless act of chopping down the pillar of the DPRK-China relations.”
          Kim did the unforgivable. He turned and snapped at the hand that fed him. The Lame Scream Media totally misinterpret what happens next. NK’s teenage rage and threats are not aimed at America, but rather at China for cutting off their allowance. How dare China do this! We barked obediently every time they rattled the chain! You don’t want us to threaten America? Fine! We’ll go rabid and threaten America and their friends until China starts breaking UN sanctions again and delivering armoured train loads of Krispy-Cream doughnuts to our dear leader!

          Deny us the access to the BeiDou Navigation Satellite System? So our CEP on a MRBM is now blown out to 40 miles? We can still make a “40 mile ring of fire” around Guam.

          Deny us access to light fuels and cripple our petrochemical operations? Look at our new solid fuel research facility China! We can still make rockets fly without hypergolic liquid fuels!

          Deny us access to thermonuclear technology assistance? Sod you China! We’ll just pack lithium deuteride around one of our fission weapons. We’ll show you … a collapsed mountain. Whoops. Castle Bravo 2.0?

          The Red Dragon has just waited NK’s supermarket aisle tantrum out, with barely a flick of the tail or the slightest sneeze of flame. The first modified sub goes missing halfway to the US coast? A tragic accident with a light oil tanker sneaking around NK with its transponders switched off? Flick. Sneeze.

          So what do China and the US get from Trump’s deal? The good: peace between the two Koreas declared. NK relinquishing all long range missiles, nuke warheads and nuke facilities. The not so good: No short term reunification of SK and NK. No regime change. Kim Jong Un gets to be the dear leader who leads NK into a new era of peace and prosperity. (Assassinations with anti-aircraft guns, flame throwers, rocket propelled grenades and nerve agents were “just a phase”. Wash, rinse, realpolitik, repeat).

          Liked by 2 people

  3. Sanj says:

    Sounds like 60% of a loaf. Reagan would have been proud. I think both sides will be partially unhappy, US with IP and China actually having to reduce the deficit 1 penny. 30 years of bad deals can’t be undone in one fell swoop, but President Trump is the first not to rollover like a spineless jellyfish. Well done.

    Liked by 22 people

    • MVW says:

      China cares about only one thing, Taiwan. It was likely never brought up. China’s strategy now is the militarization of the S. China sea as the NKorea nukes give-a-way is tied to saving their economy.

      Energy, Ag US export to China is low hanging fruit for China as they need it anyway so why not get it from the US? IP? China likely has all they need at this point.

      US will need lower corp taxes still and more favorable regulations before we can actually compete with China.

      Pharmaceuticals is one of the high profit industries China is targeting for takeover. I see nothing new there.

      We are going to have to go to Tariffs to get this ball rolling until the Taxes & Regs are better. 2018 is critical to get the taxes lower and permanent.

      Liked by 5 people

      • beigun says:

        Of course, China cares about Taiwan….it was taken from China by Japan during the Sino-Japanese War and returned per Potsdam after WWII. The US recognizes one China, and Taiwan is part of China. Or should it revert to colonial status?

        Like

        • wondering999 says:

          If Taiwan returns to Mainland Chinese government rule, isn’t that still “colonial status” of a sort —

          http://www.tacp.gov.tw/tacpeng/home02_3.aspx?ID=$3001&IDK=2&

          “Austronesian Peoples in the World
          “The indigenous peoples in Taiwan refer to the inhabitants who had been living on the islands before major Han Chinese immigration began in the 17th century….”

          What’s so great about government from faraway Beijing in contrast with Taiwan self-governing? Can Beijing take care of Taiwan as well as they can take care of themselves, or will the Taiwanese be oppressed by the northerners? Just asking.

          Like

          • Steve Herman says:

            Ask the residents of Hong Kong how folding into China has worked for them. I can casually say Not Well.

            Liked by 7 people

            • Tegan says:

              From what I was told by residents of Hong kong…they dread the day and a lot of money is flowing out to safer havens right now.
              China has them cornered, though…literally all of their water supply comes from Mainland.

              Liked by 2 people

              • beigun says:

                So, they should return to colonial status? Or are you suggesting they break from China?
                Any nation that supports that nonsense truly has little understanding of Chinese and Asian history.

                Folks in HK have made a lot of money with the development of Shenzen right next door.

                Had the chance of a lifetime in 1983 when China opened up special economic zones, first in Shenzen, next to HK. We took one of the first tours behind the “Bamboo Curtain.” During the bus drive through rice paddies, the guide announced that the land would be sold for development of real estate…we all laughed!!

                Like

            • czarowniczy says:

              China’s having a tough time with Hong Kong as Hong Kong isn’t exactly overjoyed at being absorbed by Beijing. Right now the Beijing crowd’s working through active propaganda and community reducation programs to change the Hong Kong resident’s perception of themselves from a unique Hong Kong perspective to being a part of the ‘Chinese’ regime – so much for diversity.
              Bing thing now is the central government’s work to destroy Cantonese and replace it with Mandarin as the official language in Hong Kong. Schools are conducted in Mandarin, government business is done in Mandarin and the central government is doing all it can to make Guangzhou and the area Chinese Chinese ala Beijing – again, so much for diversity, hello Beijing inclusiveness.

              Liked by 3 people

              • Howard Cosell says:

                Well I agree with you partly. They won’t destroy Cantonese – the whole ( mostly) of southern China speaks Cantonese ( Shenzhen, quanzhou, etc. ) but the official language is putonghua. Just like in hangzhou they speak hangzouese and in Shanghai they speak shanghaiese, etc. Etc. Where Beijing is trying to chance is ideology and allegiance.

                Like

                • czarowniczy says:

                  One hide peeled at a time, Hong Kong’s their biggest target and as it’s surrounded by the mainland boys they can take their time – when Hong Kong capituales the rest will follow. They’re indoctrinating the young and waiting for the old generation to die out – sound familiar?

                  Liked by 3 people

            • Jedi9 says:

              Well I can tell you, I live here right now! Hongkonians hate what has happened in regards to being part of China and they still protest their presence!

              When it became official in 1999 the first thing that happened was Hong Kong became flooded with Chinese nationals, like millions! As a result real estate prices went through the roof! Inflation happened driving up the cost of everything! I have some very close friends who are Hongkonians who complain about this, especially rental properties and the ability to do business being very hard because the rents are becoming cost prohibitive! A one bedroom apartment is the size of what my bedroom in America growing up is like and they charge 2000 USD 10,000 HKD. For real estate purchase such as buying a flat or a house is close to 15,000 HKD per sq meter! Think the average house in America comparatively speaking can be in the millions in HK!

              Another aspect of HK is the English language being lost! This can not be stated enough and it’s importance!

              For a little context:
              Singapore and Hong Kong share a similar history and often compete with each other for prestigious reasons in the current modern day climate of economics. I have a unique perspective because I lived in both places for a considerable amount of time. Both countries were British Colonies, and during WWII when they fell to the Japanese, it was considered the most humiliating defeat in Great Britain’s history, one in which they would never recovered from. Hong Kong remained a British colony until the final handover to China as per agreement and Singapore gained its independence! Singapore adopted English as its official language and passed strict immigration laws specifically targeting Chinese nationals from entering the country for fear of what is happening to HK! Needless to say, Singapore by far still enjoys a high quality standard of living with green space and sizable decent apartments, some still pricy but no where near HK! Singapore also has enjoyed a growing economy thanks in large part to having no capital gains tax, which has attracted a lot of companies.
              Hong Kong on the other hand is sitting on a very large economic bubble that is about to explode! It has in recent years thanks in large part to the invasion made it the most expensive city in the world! IMO it will not be sustainable and it is only going to get worse! The 80’s were the best times for Hong Kong, everything was reasonably affordable, people spoke English, they had their own stock exchange index, and they even had their own booming movie industry! Bruce Lee started his career here, so did Jet Lee, Jackie Chan and other notable famous actors!

              Now all of that has changed, as local governments no longer can make decisions without mainland China’s approval, as well as voting being an open democratic process. Students at the local University have protested in recent years in regards to their individual rights being infringed upon! The latter I suspect will happen again at some point in the near future as there was a recent ruling to remove a democratically elected council member for openly voicing his opposition to China’s interference in the local politics! This did not sit well with locals, as they often despise the Chinese nationals as most of them can’t speak English and is why the language itself is being lost and putting HK at a disadvantage when it comes to economic issues!

              The streets are crowded with people, I mean literally you can’t walk anywhere without being bumped into which as an American who lives personal space you never get used to this aspect of this culture here!

              Liked by 1 person

              • Jedi9 says:

                Any way before I could finish this site just posted my comment before I was ready such as trying to type on my phone often does! The point is HK has lost its indentity as a result of the Chinese invasion! Americans have no idea how good they have it, and just looking at recent examples of Australia and Canada where Chinese nationals are gobbling up real estate like madness and driving up cost of rental and homes through the roof, we in America need to protect our precious land from becoming like them. It is my greatest fear, and one that I remain very watchful of.

                Liked by 2 people

              • WSB says:

                I am with you, Jedi9. I have worked in HK over time, and Taiwan. Anything the Chinese mothership touches, it kills. Taiwan and HK need to be saved.

                Liked by 1 person

        • I worked in employee benefits in Silicon Valley. One client had hundreds of Mainland Chinese employees and hundreds of Taiwanese employees. The employer couldn’t even allow them on the same floor together because they hated each other so much.
          I wondered why they employed two groups at all. Would have been easier to hire just one talented group.
          I do know Taiwanese are very loyal to US. Mainland not so much…Won’t be nice if we betray the Taiwanese’s.

          Liked by 2 people

          • czarowniczy says:

            Considering the amount of offensive weaponry the Mainland government has arrayed ascross the Straits over the last few decades and the amount of modern weaponry we’ve provided Taiwan – it’s gonna be a helluva light show.

            Liked by 1 person

          • Howard Cosell says:

            What? There are hundreds of thousands of Taiwanese working in China. It’s money.

            Like

        • Grandma Covfefe says:

          China of old is not the same as new Communist China.

          Liked by 1 person

          • Steve Herman says:

            In some ways, China is probably more capitalist than the USA. They have a large and growing middle class. In light of their middle class, China does not want an economic/trade war with the USA. In a similar manner, the Chinese middle class does not want a military war with the USA. The 1989 Tienanmen Square protest was the rise of the middle class. The protest took the lives of thousands of China’s middle class. The protest made the case for economic power that the middle class was willing to die for. IOW, the Old Guard has the political power, the middle class has the economic power and proved they are willing to die to keep the economy flowing. If the Old Guard screws up and escalates a trade war that depresses, or God forbid, collapses their econ, then the Old Guard realizes this could tear the country apart with the real possibility/probability of taking down the Old Guard.

            Liked by 1 person

            • Beenthere says:

              The capitalism in China that you are referring to is called crony capitalism. It’s still who you know and how much you are willing to grease the palms of a bureaucrat. China has been doing that for many centuries. It started to turn that way in USA under the Clinton administration and went full throttle under the Obama administration. Hopefully Trump continues to reverse this trend. USA still subscribes to free market economy mostly.

              Because of the way China’s government is setup (Communism) and their very long history of autocrats it will be a long time before China really embraces the free market and starts behaving like a responsible nation. I personally don’t see it happening in my lifetime or my great grandchildren ‘s lifetime.

              Liked by 2 people

        • Jedi9 says:

          Taiwan was never returned to China following WWII! Kuamintang took over Taiwan following the loss of the civil war with Mao forces in which to this day remained democratic!

          What I would love to see, is more investment of US military base there! China would be outraged, but there wouldn’t be a thing they can do about it! It would be a ballsy Jacksonian thing to do but China’s recent aggressive moves in the Spratly Islands is provocative enough to use as leverage to justify such a decision by the US!

          IMO, if China wanted a war with the US, all they have to do is invade Taiwan and all bets would be off!

          Liked by 1 person

          • beigun says:

            Sounds like talking points from Tokyo.

            Taiwan claims all of the South China Sea, just like China. Why?

            Because it belonged to Imperial Japan during the war….occupied by aggression.

            Imperial Japan had administered Taiwan until surrender and then it was turned over to the Republic of China, before the communist revolution.

            Like

            • Jedi9 says:

              On a technicality perhaps, but there was little time for China to settle Taiwan following Japanese occupation and the ensuing communist revolution. So in essence it never really went back to China, nor was it administered by China as Taiwan became self ruling and became even more embolden to do so when Kuamintang exiled there following his defeat to communist forces.

              I have no idea what you mean by your reference of talking points from Tokyo, sounds more like hegemony on your part than anything else.

              Liked by 1 person

            • Jedi9 says:

              Actually after reading further about the 2-28 incident I see your perspective and I stand corrected. Although, it is hard to conceive that pro communist forces ever controlled Taiwan, but in essence when Kuamintang first arrived there, he was a representative of China at the time, so that is what I mean by technicality, because of the looting happening there by pro Chinese forces led by Chen Yi who were sending back to the main land the spoils of the looting to pay for the nationalist war efforts uprising were continuously happening as a result, thus sending the country spiraling out of control as well as leading to thousands of deaths. Also the fact that Independence has technically never claimed independence which is another issue into itself. I just can’t see how they uniting with China will ever happen!

              Liked by 1 person

    • That would be moving from SENDING loaves of money to RECEIVING 60% of a loaf we never had.

      Unspoken:
      How this deal TERMINATED back-door exports through NAFTA and other trading partners to circumvent tariffs and taxes.

      Liked by 14 people

    • TexasDude says:

      Huh? Rollover? Uhm, OK.

      Like

    • konradwp1 says:

      True. And this is because Trump was independently wealthy unlike most uni-party politicians in the pay of globalists. Globalists like Soros profit from trade imbalances. A Soros puppet like Hussain Obama could never move against the economic interests of his puppet masters.

      Listen again to Trump’s Davos speech warning the globalists:

      And a summary of the globalist response:

      Liked by 2 people

  4. Sanj says:

    I also assume that North Korea is miraculously back on the table too…

    Liked by 5 people

    • Maquis says:

      Never off it.
      Just prodded to squeak on command by Xi.
      Trump called it.

      Liked by 11 people

    • Joshuatree says:

      It never was off. Stop listening to fake news which is trying to end talks!

      Liked by 6 people

      • kenji says:

        NOTHING. Nothing coming from the msm is TRUE. Nada. It has become 98% FAKE news … and the 2% is when they looked out the window and announced that the sky was blue today.

        Liked by 8 people

    • missilemom says:

      Saw on Fox News today that joint military exercise by South Korea and US has been cancelled. Negotiations.

      Liked by 1 person

      • czarowniczy says:

        No big deal, those exercises were more sizzle than steak. I used to get the coild weather slots in Foal Eagle but no biggie, we had nice and warm temper tents and I almost invariably worked with the Koreans in their SCIF. The exercises were more a show of resolve and how miserable we could make the process of getting us from our warm beds at home to a quite possibly miserable tent on a wintery hillside in Korea. Neat story about an AF sergeant I hadn’t seen since basic training some 30+ years back who found out what happens when you piss-off an Army detailer,
        We exercised using a standardish script and dasyus later we declared victory and gave everyone a day or two off to enjoy Seoul before a long and cramped flight home.
        We probably came out ahead in delaying/cancelling a part of it, it runs for quite a while and is quite expensive. In reality, if the balloon went up, we’d get activated and land on hastily repaired runways the NKs would haver cratered, that’s if we could even land, and fight our way through a wasteland where nearly 800,000 South and North Koreans had already clashed and thrown most of what they had at each other. I’d always envisioned the scenario as our bei ng ferried over from Japan and landing on a beach with rifles, brooms and mops.

        Liked by 2 people

  5. GB Bari says:

    The statement and the additional explanations all sound like the negotiations are headed in the right direction. The final terms will be of most importance, and, secondarily, how this affects the North Korea situation.

    Like

  6. Without specific numbers, dates, I’m afraid Mr. President will be fooled by Chinese.

    Like

  7. BobBoxBody says:

    A picture says a thousand words. Ross can’t help but grin. Tells me everything I need to know.

    Liked by 12 people

  8. beigun says:

    Trump and Xi seem to be making a “Grand Bargain.” Peace in Korea and bilateral trade could set US-China relations to the most important in the world.

    Maybe both the US and China will act together (SOF) to enforce denuclearization (inspections) while guaranteeing the security of the Kim regime while economic transformation occurs in the DPRK?

    US-Chinese SOF working together in the DPRK for Kim’s security and verifying denuke inspections, while simultaneously creating a US-China trade deal? How else can we guarantee the DPRK follows the agreement?

    Big Power politics not seen since Yalta…and this time we have Trump instead of FDR!

    Liked by 1 person

    • John Davis says:

      Yes, President Trump is making history, and Making America Great Again! God Bless Donald J. Trump
      and God Bless the U.S.A.! TRUMP 2020!

      Liked by 4 people

    • wondering999 says:

      Yalta? Hopefully these negotiations will turn out better than Yalta, which forcibly displaced over 12 million civilians… I’ve listened to survivors of the ethnic cleansing describing the misery and death left out of most history textbooks

      https://www.huffingtonpost.com/rm-douglas/expulsion-germans-f. Iorced-migration_b_1625437.html

      “By mid-1945, not merely the largest forced migration but probably the largest single movement of population in human history was under way, an operation that continued for the next five years. Between 12 and 14 million civilians, the overwhelming majority of them women, children and the elderly, were driven out of their homes or, if they had already fled the advancing Red Army in the last days of the war, forcibly prevented from returning to them….”

      Like

      • beigun says:

        There is no Alger Hiss real Russian Collusion working for Trump, like there was for FDR at Yalta.

        Liked by 3 people

        • Maquis says:

          Nor does Trump cry “Uncle” as did the simpering fool FDR.

          Liked by 2 people

        • wondering999 says:

          Hmm. Suddenly I get a “404” on that Yalta link that was available earlier today. Wonder why

          Like

          • Dennis Leonard says:

            What someone should worry about is why you would link that site anyway.

            Like

            • wondering999 says:

              Dennis… the truth has no agenda. Yalta resulted in millions of people uprooted, Many millions more, highly educated people, have no idea that the exalted leaders arranged such a misery. If one more bitter fruit of Yalta turns out to be the forcible relocation of Taiwanese who may no longer self-govern, how will that be a good thing. You have an opinion about this?

              Like

    • dufrst says:

      Another way would be reunification of the Koreas. You can initially do denuclearization in exchange for an economic aid agreement. Then you can negotiate the end of the Korean War in exchange for a significant reduction of US troops. And finally, you can start the process of reunification by floating “Unified Korean” bonds for infrastructure projects, like roads, bridges, electrical, etc. in North Korea. Then establish a free trade and free movement area with a single passport. Finally, create a common currency ala Europe, with a Unified Central Bank and establish a confederation political entity that would represent the consensus of both countries internationally on foreign and economic policy. From there you would have essentially reunified the two nations without displacing the regimes.

      When North Korea is finally up to par with South Korea (or at least close), which will be many years down the road, then you can perhaps transition to a formal political union if the people desire that. At worst, you could continue on as two independent countries under a single confederation represented internationally (like in the Olympics). But at least you won’t have a pariah state threatening the world with their nukes in exchange for economic aid every 5 years! The question is how far is Kim Jong Un willing to go in his reforms? Would he down the road, unify the military command in the confederation?

      Anyhow, I got too far ahead. Personally, I would offer Kim, Pyongyang as a quasi independent state in the mold of Hong Kong, Dubai, and Singapore where he would rule, but letting the rest of North Korea go to be governed and redeveloped by South Korea, US, and Japan.

      Trump needs to get a permanent solution. Denuclearization in exchange for aid has been the game the North Koreans have played for the last 30 years. When they get their aid, the immediately restart their nuclear activities. This time, the agreement needs to be in stages and Kim needs to prove that he will change strategically or else we will be back at this 5 years from now. It will essentially be an Iran agreement if Trump stops at denuclearization. A permanent solution has to involve reunification of the Koreas as John Bolton has said in the past. Kim can either do so voluntarily and reap the great fame or he can do so buried under the rumble caused by our B-2 bombers. That’s the message I hope Trump will convey.

      Liked by 1 person

      • No central bank please >. >

        Liked by 1 person

        • dufrst says:

          I hear you but to have currency in today’s age, you need a central bank. The South Korean government has been the most hostile against alternatives such as crypto currencies. So, I’m just bowing to reality.

          Like

      • No, no. Don’t do common currency like Europe has. Nothing good can come of it. Common currency between too different economies won’t work. East European countries still mostly use their own currencies and their economies are growing while the Eurozone is struggling. The only country benefiting from Euro is West Germany. Please note I didn’t say Germany but West Germany. Over 20 years after reunification East Germany is still the poor area with high unemployment while most industry is still in the West. West Germany benefits from Euro because it’s weaker than their old Deutschmark was, therefore giving a boost to their exports. For most Eurozone countries Euro is too highly valued, making their export goods more expensive and import goods cheaper, thus driving jobs out of the countries. Any sane person knows not to take any pages of the playbook of the Soviet Union 2.0, as EU itself has shown its policies to be deterring economic growth and freedom. I can’t wait to see this house of cards come to its inevitable demise. I was born into a free Europe of independent nations and I’d like to live in it again before I die. I’m in my 40’s now so I do give myself pretty good chances of that happening.

        Like

        • dufrst says:

          I’m not a fan of EU but for most part it has accomplished its main aim of keeping the nation’s within from going to war with each other and keeping Germany from ever threatening the world again. We take for granted that Germany was a pariah just as North Korea is today, probably more so!

          The objective in reunification is to keep North Korea from their pariah ways. That’s just one model. Another is to isolate the Kim regime in Pyongyang and allow the rest of the country to be developed. Or outright reunification with Kim turning over power to South Korea and the US (not gonna happen).

          My point is how do you eventually achieve reunification without war? The EU managed to do this. Germany managed to do it albeit not perfectly in either case. But we are not looking for perfection from the onset. We are looking for a permanent solution to the North Korean menace.

          Like

    • sunnydaze says:

      If N.Korea actually got their act together and allowed/encouraged a Capitalistic middle class to develop, it would increase demand for Chinese -made goods.

      All of these east Asian countries – especially the ones that were heavily influenced by Mother China- are traditionally very Capitalistic.

      It’s been a real stretch for them to go to the Communist Poverty route.

      It’s time for N. Korea to wake up from it’s Commie Nightmare- at *least* economically- and everyone knows it.

      Like

  9. Jazcox says:

    I’m noticing a disturbing trend of bash or be negative against Trump trolls on this site! You not fooling anyone, get back and stay on twitter, we don’t need your retarded Crap!

    Liked by 1 person

  10. EV22 says:

    For all you naysayers: Trump never would have allowed this statement to be released if the deal wasn’t very substantially beneficial for the US. He knows the MSM would crucify him otherwise.

    Besides, he prides himself on being our ‘Promises Made, Promises Kept’, Besr Negotiator Ever President. (And that’s only one of the reasons we love him.)

    MAGA! MAGA! MAGA!!!!!!!!!
    Thank you, Mr. President!

    Liked by 3 people

    • Don’t forget, when Mr. President visited China last year, there’s a signing of $253 billion in trade deals, yet our trade deficit with China rose to record high for the first 4 months of 2018…

      Liked by 2 people

      • EV22 says:

        I’m not forgetting anything, bison. I’ve watched POTUS operating from Manhattan since 1978. Trump knows that turning matters around that have been allowed to turn derelict doesn’t happen overnight. But anybody with commonsense and a modicum of experience realizes this is a MAGA first step.

        Liked by 4 people

      • Yeah this is a key point. Those agreements were all non-binding MOUs. And the result was… an even larger deficit. Frankly every Treeper should understand the Chinese are famous for their ruthless deceptions. They’re the worst sort of used car salesman. They’ll take your money and put a figurative Lamborghini in your driveway with no engine under the hood. Looks great until you try to drive it. That’s how they roll.

        Like

  11. fleporeblog says:

    Jedi wrote a great response to one of my posts where I was complaining about Mnuchin and Kudlow just wanting to get a deal done versus Navarro and Wilburine wanting to destroy China economically.

    I am going to share it:

    I disagree with your premise regarding Mnuchin, he holds the power of the purse and is a very important influence on Wall Street and thus will do whatever the final outcome is. Sure there maybe disagreements from time to time with his team mates, but Mnuchin will be on board with what ever deal is decided upon in the end, I have no doubt he is loyal to American interests first.
    Kudlow is just playing the media to placate the skeptics and to keep them at Bay. In the end his job is to sell the final outcome! Think happy Panda, soaringly Eagle win win for everyone! It’s what he is good at!

    Also, on the trade deficit issue and getting factories up and running will take time. Like 4 years to simply get a factory that produces cam shafts for example is what it takes to set it up.

    While setting the terms of our future arrangement with China is important in current context, there is much, much work to be done to fix our problems from within to make the bigger picture work. 3% GDP is a really good start, but getting to 8% is really the bigger goal for the worlds largest economy and where it should be at. In other words we can’t allow complacency to stunt this vision, and that means getting rid of the Politicians who are in Donahues pocket so that other people who are loyal to this plan can be put into place to encourage more growth with better policies! Lowering the corporate tax rate again to 15% will no doubt would be a another great move to the already 23% that was earlier passed, but IMO wasn’t enough! Give it time!

    China’s rising middle class also means higher costs of labor which is why Chinas recent economic model change to go to a service economy is based on this perspective. Hence also why India the next rising economy will have a lot deals with American companies to subsidise short falls in certain sectors of our manufacturing economy to meet certain demands!

    China’s investment in AI and bio tech is almost following Japan’s current model. They have an Aging population soon to retire that will put a strain on the social entitlement spending and not enough of the youth to fulfill the tax revenues to pay for it. Thanks in large to their one child policy this is a problem they will soon be facing. Japan has one of the worlds lowest birth rates yet they still remain productive thanks in large part to AI! This is an issue that we have to consider as more companies look to reduce their costs of labor and AI will be a threat while China develops this tech are hedging this is what they will be selling in the future. In other words don’t be lulled into a thinking that manufacturing with human labor is going to save us, but more in line with thinking outside the box 20, 30, 50 to 100 years from now and what technology will do to influence our approach to manufacturing will be the ultimate deciding factor of remaining competitive!

    As of right now China is poised in surpassing the US in the tech industry and this has to be the number one issue as it relates to our intellectual property rights and our tech sector! It is also why ZTE has been cited for violations because Chinas want for acquisitions of American tech companies is motivated by acquiring their technology for their own development! This IMO is Trumps biggest concern and rightfully so, and is another reason why China has invested so heavily in clandestine operations within the US, stealing American technology is their number one objective aside from acquiring real estate.

    Liked by 5 people

    • Perot Conservative says:

      China copies, doesn’t innovate.

      Q2 poised for 4.0% GDP. Energy and ag can be exported NOW.

      Trifecta? NAFTA / NK / Trade?

      Liked by 1 person

    • dufrst says:

      8% growth? There’s no way that can be sustainable for our economy. We are waay too developed to sustain that level. 3-5% sustained growth is all we need and we will remain permanently atop the world economically. If Trump is able to get the trade side of the equation right with our major trading partners- EU, China, NAFTA, Japan, South Korea and ASEAN – we can see above 3% growth on a sustained basis which will help solve a lot of our problems with entitlements, etc.

      Get out and vote in 2018! Send Trump some reinforcements in the Senate and we will see our be greater than ever before! MAGA!!

      Liked by 4 people

      • fleporeblog says:

        We are halfway there without any of the new deals kicking in! We signed KORUS and some others. We are making great progress with China 🇨🇳. Canada 🇨🇦 and Mexico 🇲🇽 are completely screwed with the current NAFTA negotiations because the longer they take the better it is for us because uncertainty is killing them and causing Corporations to begin to leave. The EU is about to get their asses handed to them. As soon as North Korea 🇰🇵 is completely denuclearized, Japan 🇯🇵 will have to sign a new trade deal.

        Liked by 2 people

        • dufrst says:

          Don’t get me wrong it would be lovely, but it’s not sustainable. At best you might get a quarter like that, but years of 8% growth? No way. Inflation would be raging in this country, simply for the fact that we really don’t have that much more to develop. We are a pretty developed country as is. Our per capita GDP is already near $60,000 per person (compared to $10000 for China and Mexico). Sustainable growth around 3-4% would be more than enough to keep us far and away the most powerful nation economically. China would only be able to catch us if they grew at 10% plus over the same period and that’s not happening!

          You are right that if all of these trade deals are straightened out and I mean really straightened out, we will see big growth numbers. Perhaps we will get a 8% quarter or two. I am talking about sustained, year over year growth.

          Liked by 4 people

          • fleporeblog says:

            Ok that makes sense!

            Liked by 2 people

          • cthulhu says:

            Way back when, when I was a new manager, I attended one of those corporate training things. One which actually gave me something to chew over and incorporate into my management style.

            They said, “it is a common practice in management to focus on ‘doing things’. There is a sharp line drawn between doing and not doing — enforced with timecards and attendance sheets, and time spent and billable hours, ‘strivers’ and ‘slackers’.” They continued, “in reality, there is a matrix — there are also things that need to be done and things that don’t need to be done. This gives you striving for what needs be done (good); striving for what doesn’t need to be done (meh); slacking towards what needs to be done (meh); and slacking towards what needn’t happen in the first place (meh).” They put up a big chart on the wall to illustrate this.

            They then continued to say that everyone and their aunt Sally are trying to push people into exerting more effort — when there is resistance because humans are social creatures and tire…..but there are just as many gains available by eliminating tasks that don’t need to be done and focusing attention on what needs to be done — and people freed from such mindless needless drudgery will generally applaud you.

            Slashing government, government interactions, legalistic posturing, graft, lobbying, virtue signalling, diversity programs, and indoctrination could easily result in a solid decade of 8% growth — and that’s only from moving bureaucratic parasites to unemployed. If we could move them to productive citizens, there could easily be another decade beyond that.

            Liked by 2 people

            • dufrst says:

              Lol. I hear ya!

              Liked by 1 person

            • Jedi9 says:

              This is an excellent post and totally agree on the trimming of the waste in order get more efficient production out of our citizens. Not hard to conceive when jobs are plentiful, everything else shakes out such as lowering crime, less violence in the streets, and elevated status for everyone. If the majority become happy as a result, they tend to be more productive.

              Like

      • Jedi9 says:

        I disagree. China is currently between 6 and 7 % respectfully. Also it was less than 20 years ago were the US were at those numbers before our sellout started. So I think it’s realistic, but whether we will get there is another question and speculative due to the technological advances currently underway might influence that outcome. It all depends on demand. Our we going to be a manufacturing hub thus devaluing our dollar to use to our advantage or are we going to revert to settling for 4 to 5 % GDP growth and say “oh that should be plenty we don’t need any more”? The point is once all cylinders are firing anything is possible!

        Liked by 1 person

        • dufrst says:

          China had much more to develop and they have a 1.2 billion people. You are comparing apples to oranges. There is not a time in the last 50 years that the US has ever grown year over year at 8%. It is just not realistic, sustainable (because of inflation) and frankly not even necessary. Our economy is so large that 3-4% growth adds $600 to $800 billion to our economy a year. When we get close to $30 Trillion, that type of growth adds $1 trillion a year!

          Its the law of large numbers that restricts our ability to grow at stupendous rates like other developing countries. It’s simply a function of us having a larger economic base and an already highly developed economy.

          Believe me, if its possible to grow on a sustained basis at 8% GDP I am all for it because in 10 to 20 years we will all be millionaires lol!

          Like

          • jello333 says:

            Yeah, like stocks, futures, (or in my case Forex) trading. Say you start off with $100, and make 2% profit a day. Sounds easy. Keep doing that day after day for a long time. But eventually your account grows to $1M (I wish!)… do you still hope to “easily” make 2% a day? $20,000 a day? Mathematically it all seems fine… but realistically, not so much.

            Liked by 1 person

          • Jedi9 says:

            What are you talking about ? The US was close to 9% GDP in 1980’s look it up, and after WWII like 1950’s we were in the mid teens 15 to 17. When I get time I will post a link to prove this!

            Liked by 1 person

            • dufrst says:

              Not on a sustained basis. I’m talking year over year. I’m talking over an entire business cycle. I’m not talking about a quarter or two of 8% growth. I’m talking over a long economic expansion like the 1980s and 1990s.

              No need to get all wound up! 3-4% growth is very much needed over a sustained expansion and will brings gobs of wealth to our nation and solve a lot of our fiscal problems. If we do better, don’t make it out to seem like I’m against that! I would be over the moon!

              But you have to be realistic. The US is at near $20trillion in GDP. It is just much harder to grow such a large number like that by 8% than to grow $1 trillion or even $10 trillion by that amount. Why? Because 8% of $20 trillion is a massive number ($1.8 trillion). To do that year over year? Come on man! Our population (325 million) grows at less than 2% a year. Do the math.

              Liked by 1 person

              • Jedi9 says:

                I disagree, mainly because you trying to equate human physical labor based on population to suggest it is not possible. What you are leaving out, is the technological factor that is present in manufacturing that will out pace human labor to meet tomorrows demands. Things like automation and AI are the future, and will no doubt make it easier to reach those numbers based on time and efficiency and cost despite population size and human physical labor.

                Like

                • dufrst says:

                  They don’t pop out of thin air and that’s not the only rationale on my argument. China grows big because they have plenty of room to develop. They have 1.2 billion who were in abject poverty just 20 years ago. That’s why their growth rates are outsized. It happens to all developing countries for awhile until you get diminishing returns. Our country is highly developed relative to all other nations and has been on a relative basis for a looong time. You just can’t get to that type of sustained growth rate year over year without a gamechanging, paradigm shift in the economy, such as AI robots taking over as example and everyone owning one. Is that going to happen anytime in the next 10 years? Maybe, but realistically, I would be thrilled to see 3% year over year growth with the occasional 4 thrown in before the next recession (which will come!)

                  Like

          • Jedi9 says:

            Here is the link I found that proves your assertion of not hitting 8% in the last 50 years is flat out wrong. We hit 11% in 1983, so I am not sure what information you are looking at that where you came up with not hitting that mark in the last 50 years, clearly we did.

            http://www.multpl.com/us-gdp-growth-rate/table/by-year

            Like

            • dufrst says:

              Sustained growth and how many times year over year have we hit anything close to that number since 1983?

              Like

              • Jedi9 says:

                To answer that question, I say we hit that mark about 5 to 6 times within the decade. I am looking at percentage growth rate not real GDP rate, because of the inflationary factor associated with those numbers don’t accurately depict a healthy economy when discussing production in the manufacturing sector. I will agree with you about some years in the 70’s, but like all decades and looking at the aggregate it is cyclical with down years and up years that fluctuate over time. The same can be said for the future, and whether we hit those benchmarks again remains to be seen. Its all speculative at this point in time, and will be telling some years from now where we will be when it comes to our growth rate.

                Like

            • dufrst says:

              And oh, I looked at your “numbers.” Try using real GDP, not nominal numbers since the 1970s look like boom time when in fact that was a very lackluster decade due to inflation.

              Again, I don’t know what got you all spun up, because I’m completely for above the trend growth and we certainly have been below trend for the past 8 plus years. 3-4% REAL GDP growth is above the trend and will lead us to great prosperity. MAGA!!

              Like

              • Jedi9 says:

                You are saying it is not possible, when clearly it is, so I am not sure what you want to disprove that, or doubt, when in essence we clearly we capable of hitting that mark again.

                Like

                • dufrst says:

                  It’s not impossible but nothing is impossible. But realistically? Nope, not with our population and how developed we already are. Just think about it. If you grew at the numbers you’re saying do you know what that means? Do you know how much more each person would have to produce year over year to get to that number at less than 2% population growth? We are a productive people but not that productive!

                  Like

            • dufrst says:

              And viola. Real GDP numbers from your own source:
              http://www.multpl.com/us-real-gdp-growth-rate/table/by-year

              Nice try 😉. Your heart’s in the right place though!

              Like

              • Jedi9 says:

                I thought we we talking about sustained growth? Clearly the numbers I posted indicate such.

                Like

              • Jedi9 says:

                Also the numbers are adjusted to include inflation so it is subject to debate, the point is, sustained growth ()GDP growth rate we are talking about just so we clear) for the worlds largest economy to reach an 8% GDP is not at all that hard to accomplish if we accomplish getting back to previous bench marks in the 80’s and 70’s.

                Like

                • dufrst says:

                  It’s not subject to debate. That’s why there’s real GDP so that you can compare different eras. It has not been done year over year since 1965. That’s the end of debate.

                  The real question is why would you think 3-4% GDP growth is something to sneer about? That would be HUGE! I don’t think you fully appreciate what that means for our economy at the size that it is now.

                  Think about the rule of 70. If we grew at 4% sustained, our economy would double its size now in less than 20 years (18 yrs to be exact; $40 trillion). Assuming our population grows at 2% over the same period that translates to per capita GDP of $82,000 on Real basis. Today our per capita is $60,000. That happens by the year 2036. That’s serious!

                  8% growth means doubling our economy in 9 years (2027). At a 2% pop growth over the same period that translates to about $98,500 in per capita GDP on Rea basis.

                  As good as that would be, that would be insane to go from $60K of production per person to $98K per person in less than 10 years! Unless we have developed some serious AI robotic technology that replaces a third or two of all jobs in this country sometime in the next ten years, that growth will not realistically be achieved!

                  Like

              • Jedi9 says:

                “Nope, not with our population and how developed we already are. Just think about it. If you grew at the numbers you’re saying do you know what that means? Do you know how much more each person would have to produce year over year to get to that number at less than 2% population growth? ”

                It does not matter, people wouldn’t have to produce at the rate that you are talking about, not in this day in age where machinery and AI will be outputting way may than a human can, so that argument is bunk! Look at Japan as a primary example! They have had a declining population and low birth rate for quite some time, yet they managed to continue their production levels at a steady pace, thanks in large part to automation.

                Like

                • dufrst says:

                  Japan was a poor example. Their growth rates have been anemic precisely because their population while productive is declining.

                  Like

    • Thanks for reposting the EXCEPTIONALLY prescient comment from Jedi.

      Reminds me of recommendations sent to IDIOT Romney at the outset of his 2011-2012 Presidential Campaign to make America …
      • The greatest Energy Exporter on the planet
      • The world’s Greatest Multiplier of Entrepreneurs
      • The Automation Nation

      He ignored every one.

      M🇺🇸A🇺🇸G🇺🇸A!

      Liked by 4 people

    • fallingsnow says:

      It is critical for our country’s future – the vision and the corresponding road map to systematically build the healthy and sustainable structure of the economy. Previous blind globalization & outsourcing together with indifferent attitude to ever-increasing competition challenges from inside and outside have caused significant structural concerns and addressed urgent needs to restructure. I believe our VSGPT has considered it for long time and has a clear big picture, together with his team, he will lead our country on that track. It is the most important for us to trust him and his team, support them, and share our points or thoughts from different perspectives – hopefully they might be really helpful in substantiation of the big picture and the detailed paths, particularly we have many talented treepers here and they are also patriots.

      Liked by 3 people

    • bessie2003 says:

      I can see the recent focus by this Administration towards the development of the ‘space corp’, STEM focus in early education, plays into Jedi’s observations. Focusing the US to incorporate the advances of AI into our gov’t.s policy decisions.

      Liked by 1 person

  12. Cliff Indiana says:

    We need an index here! I trued to decipher from context, but couldn’t figure out- what’s IP and SOF?

    Like

  13. Marygrace Powers says:

    ” I Support Free Trade, but it has to be Fair” – PDJT @Davos

    He said he would always promote “America First”, as he
    expected other world leaders to do on behalf of their own
    countries. “America First does not mean America alone.
    When the United States grows so does the world,” he said.

    Making the WORLD great again/one country at a time. We’re FIRST.

    Liked by 5 people

  14. “The Chinese delegation was led by State Council Vice Premier Liu He, Special Envoy of President Xi.”
    • Liu He is personally ON the HOOK.
    • President Xi OWNS the OUTCOME.

    Liked by 1 person

  15. “There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China. To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services. This will help support growth and employment in the United States.”
    • Targeted Outcomes: Substantial reductions in U.S. “Trade Deficit in GOODS”
    • Resulting Impact: Boost in U.S. Manufacturing Production
    • Benchmarks for Success/Renegotiation: “Growth and Employment in the U.S.”
    • Taking out the Lumps: “Meet growing Consumption Needs of Chinese people”

    Liked by 1 person

  16. “Both sides agreed on meaningful increases in United States agriculture and energy exports. The United States will send a team to China to work out the details.
    • Tactic: Export Growing Supply of U.S. Agriculture & Energy
    • Deal Strategy: China saves face with imports of multiplying unmet Consumer Needs
    • Geopolitical Strategy: Grow Chinese DEPENDENCE on HARD-to-REPLACE U.S. Exports

    Domestic Strategy
    • 1.0: Massively reduce the Agriculture Budget for NEEDLESS reductions in planting and for NEEDLESS price supports
    • 2.0: Increase Wages & Cut Unemployment by increasing demand for low-skilled Black and Hispanic agricultural workers
    • 3.0: Introduce Work Requirements to end Welfare through Growth in Jobs
    • 4.0: Boost Marriage & Birth Rates, reduce Divorce & Single-Parent Rates, and propagate Family Values & Citizenship by increasing wages and employment stability to levels that support stay-at-home mothers
    • 5.0: Boost annual GDP Growth by 1-2% to fund current Social Security for Seniors and incentivize 401K-Funded Retirement for Private & Public Sector Employees

    Liked by 2 people

    • dufrst says:

      Got to send Trump the reinforcements in the Senate this year. I have never seen an election year so ripe to completely realign the nation like 2018!

      The GOP can literally add 10 senators (or more!) without losing a seat in the Senate if they play their cards right. And thus far, from the candidates that they are fielding right now in FL, OH, PA, IN, and WV, they are off to a great start. Think about it, OH, FL, PA, IN, WV, ND, WI, MO, and MT can be won, as they were states Trump won. Then you have MN, VA, ME, and DE that are not gimme states for the Dems if the right GOP candidates are in the race. Now, the GOP will have to defend states like TX, AZ, NV, and TN that are not gimmes either with the right Dem candidate, but I like the GOP’s chances in their defense states than I do the Dems!

      MAGA will soon turn to GTEB (Greater Than Ever Before) if the GOP can with these seats and have 55 to 61 Senators on their side. With RINOs like Flake and McCain gone and adding MAGA reinforcements (hopefully Utah passes on Romney), Trump can get a real robust agenda through (assuming the GOP holds on to the House!). Get out and vote! MAGA!!

      Liked by 3 people

  17. “The delegations also discussed expanding trade in manufactured goods and services. There was consensus on the need to create favorable conditions to increase trade in these areas.”
    • Deal Strategy: Define “Favorable Conditions” for increased Trade as
    – AUDITED “Fair Labor Practices” and “Intellectual Property Protections”
    – RECIPROCAL “Trade Balance”
    • Enforcement Strategy:
    – RECIPROCAL Tariffs & Taxes until “Trade Balance” is achieved
    – COMPENSATORY Sanctions for ”Free & Fair Trade Violations”
    – TRIGGER Provisions requiring “Deal Renegotiation”
    – SUNSET Provisions requiring ”Periodic Deal Renewal”

    Liked by 1 person

  18. andyocoregon says:

    I thought China previously signed an agreement to not militarize its man-made islands.

    https://www.cnbc.com/2018/05/19/china-lands-bomber-on-south-china-sea-island-for-first-time.html

    Like

  19. “Both sides attach paramount importance to intellectual property protections, and agreed to strengthen cooperation. China will advance relevant amendments to its laws and regulations in this area, including the Patent Law.”
    • Deal Tactics: Recovery of Economic Value from Stolen Intellectual Property
    • Deal Strategy: Recovery of Stolen Intellectual Property (e.g., Ownership transfer of abusing Company)

    Like

  20. “Both sides agreed to encourage two-way investment and to strive to create a fair, level playing field for competition.”
    • Deal Tactics: Sanctions for Currency Manipulation
    • Deal Strategy: Dollar-denominated Trade that puts Cheating Institutions at risk

    Like

    • • Deal Tactics: ZERO back-door Chinese Exports to America through NAFTA and other trading partners to circumvent deal provisions, tariffs and taxes.
      • NAFTA Impact: TERMINATE NAFTA Back-Door Exports of China-produced Auto, Aluminum and Steel products to America
      • NAFTA Tactics: Massively increase in Partner URGENCY and U.S. LEVERAGE to consummate a deal before manufacturers flee to America.
      • NAFTA Strategy: Require Mexico to pay for the Wall, Jointly end Illegal Immigration across the southern border and Jointly end Cartel and Human Trafficking

      Liked by 1 person

    • Maquis says:

      D’oh! So China buys our energy, and trades in dollars. Does that not put the kibosh on plans to avoid dollar-based oil trading and abandon the dollar as the world’s reserve currency?

      Liked by 3 people

  21. dufrst says:

    This deal was always going to involve energy and food resources. We will ship them more raw materials and food and they will continue to ship us cheap manufacturing products. The real deal is what about our technology? What about our high end manufactured products such as airplanes, automobiles, etc, and services? Raw materials and food are all well and good, but they are on the low end of the value added scale. Real money is in the value added of manufactured products and even more the value added by services attached to manufactured products and other services. This is where the trade deficit can be ratcheted down rapidly. If the services trade is expanded then we can balance the trade deficit while not even harming China in any way.

    So, as Sundance said, the long hanging fruit of raw materials that feed their massive manufacturing base and food that feed their massive population was a given. What of services? High end manufacturing products? Will China adjust those barriers and quotas to allow more US trade?

    Intellectual property is an area we need to vigilant on. When China cheats we need to be able to slap tariffs on the cheater just as was done to ZTE. We need to be absolutely strong on enforcement to change their behavior. I don’t see China changing their behavior otherwise, even if they sign a paper promising they will do better.

    Liked by 1 person

  22. MakeAmericaGreat says:

    This is absolutely massive. Sure, we may not have final details yet but the Chinese have agreed on broad goals and that means they cannot easily go back on them without losing face. And, as most know, not losing face is gigantic in their culture and hence having this framework is a big achievement. They are essentially “stuck” with this now, in one way or the other.

    1. As someone mentioned above, this should get the North Koreans in line (although they may yet be used a a bargaining chip for the final terms of the deal).

    2. This should start to calm the markets. You can’t credibly talk “trade war” after this statement comes out (at least for the moment). This validates Trump’s approach to the talks and gives the hint of a favorable outcome to come for the USA.

    3. As Flep and others have said, any positive movement in the trade deficit will proportionally affect the GDP in a positive way. Thus, even if Trump gets 1/10th of what he’s looking for, that’s going to boost the GDP up. And the more the GDP goes up, the more Trump’s polls go up, the more leverage Trump gains for further negotiations and so forth.

    As Sanj said above the “60% of a loaf” strategy. Don’t focus on getting everything you want, get what you can and then move forward. With increased standing and leverage.

    Because of Trump’s having to deal with a domestic coup against him, his leverage (in the eyes of the Chinese) may not be what he wants it to be. Yet. But as the wins start to pile up and the economic numbers tilt upward, that leverage increases and the negotiations get better and better.

    A2 pointed out recently that the North Koreans (and the Chinese, I think) actually believe the USA media narratives on Trump. Which, of course, means they think his leverage isn’t great and he’ll be gone by 2021 at the latest. That has to change.

    Getting these smaller wins is how you change that dynamic, bit by bit.

    Liked by 2 people

    • MakeAmericaGreat says:

      This same dynamic — the attempt to lessen Trump’s leverage in negotiations — is why John Kerry was telling Abbas that Trump would be impeached, and why Kerry was trying to get the EU to “wait out” Trump on the Iran Deal. And if you’re Abbas/EU/China/North Korea, you have to at least listen to these things. You have to consider them. That is, you have to consider that if the USA media and some powerful people in the USA are against Trump, then he might not last very long. And this makes you feel you have more leverage.

      Getting China to agree to even a small deal here is like Trump getting the GOP to sign on to his tax bill. Once the partner does the deal with you, they are more “bound” to try to ensure your success because now THEY are tied to you. They have skin in the game now, with you.

      I’m extremely happy with this statement by China/USA and I’m eager to see what effect it will have on the markets.

      Liked by 3 people

    • sunnydaze says:

      …” You can’t credibly talk “trade war” after this statement comes out (at least for the moment).” ……….

      The Business channels won’t, cuz they are more responsible when it comes to reporting *actual* news.

      But well be hearing about the Fake Trade War from all the usual suspects for…….forever.

      Liked by 1 person

      • MakeAmericaGreat says:

        I saw a Reuters article after this news came out, Sunny, and they were still trying to talk trade war. LOL!

        So you’re right. But the market will get the message, I’m sure. That’s all that matters.

        Like

  23. kgt says:

    There will always be a trade imbalance until China agrees to implement sane labor laws and worker protections that exist in the rest of the developed western world. Any tarrifs that we impose should be keyed to China implementing worker protection laws. This would level the playing field and eliminate unfair competition with Chinese slave labor, child labor and unsafe factory conditions.

    Like

  24. Publius2016 says:

    Peace is the prize! President Trump’s Asia Pivot is about win win…no need for WWIII when money is on the table…deal me in!

    Like

  25. Publius2016 says:

    Nothing with China is more important intellectual property! They have a totally independent system…it’s like the 1800s for them…someone can patent something in US and their big corporation will patent it in China and get mass distribution before you get a patent latter from Uncle Sam…try taking these Chinese guys to court…take twenty years!!!

    Liked by 1 person

    • sunnydaze says:

      Historically, China never had Intellectual Property/Copyright Laws, etc.

      So this has been kind of stretch for them. And, of course, the West never called them on it, seriously.

      That’ll change. It’s gonna be in their own interest now to abide by this stuff.

      Like

  26. This deal seems to ask China to import more US products (agriculture and energy), but doesn’t talk about reducing China’s exports (electronics, industrial products) to US. In other words, it doesn’t address moving manufacturing jobs back to America, at least not in words as of now.

    Like

    • dufrst says:

      This is true. Manufacturing should be in the agreement. It doesn’t mean that China has to reduce their exports. It means that they must buy their high end manufacturing products from the US to balance trade out. When I say high end, I mean products that our corporation have patented, developed and there is no corresponding entity in China on par. Most of what they sell us on the manufacturing side is either our own companies sending things back in their supply chains or cheap imports used to feed our consumption (purchased by WalMart, small businesses, etc). We will buy their stuff as long as they buy ours instead of putting their money in the US Treasury savings bank to collect interest. China has been hording cash, it’s time to spend.

      Liked by 1 person

      • Rhoda R says:

        If the US can get their factories up and running there won’t be any need for an agreement with China – we’ll just build the stuff ourselves.

        Liked by 1 person

  27. beigun says:

    Is America ready to compete economically on a large scale in China? After the sale is made, to ensure you “keep the deal” and do not lose the IP.

    This trade deal reminds me of trade negotiations with Japan over 30 years ago. It is all about implementation. That means building a cadre of Americans who can do business in Asian markets like China, Japan, and Korea. Better know how to read the local newspaper for starters.

    How many Americans study Chinese, Japanese, or Korean in college?

    If the US is really going to compete in Asia, then we have to up our game in Academics.

    Liked by 3 people

  28. El Torito says:

    This all sounds great – IF you trust China.

    Liked by 1 person

  29. VeritasVincit says:

    I think I’m about past second guessing “The Trump”. Every time I think he has made a gigantic mistake it turns out that he was right all the time. SIGH. . .
    and HALLELUJAH!

    Liked by 1 person

  30. melski says:

    When all trade issues are settled I would like to see Sundance change the current picture of Presidents Xi and Trump, in front of their respective country flags, with a new picture of them both smiling and shaking hands!!

    Like

  31. A2 says:

    Took a spin through the Chinese press this morning. Basically they adhere to the joint statement except for a few interesting phrases in the Op-ed columns. One particularly funny phrase was that China ‘does not ‘haggle” (LOL).

    I wasn’t sure about the possible outcomes as the President did not meet with Liu He when he went to Washington back in Feb., then there was the hokey pokey whether Xi’s right hand man would come back.

    Not many details as to what specifically was agreed, except hints that soybeans and sorghum counter-tariffs by China will disappear and the deal signed between a US LNG exporter has struck a deal to export to China (estimated worth about 200 million US dollars.

    As for the ‘made in China 2025″ objectives cast in stone by China, no indication of movement except an agreement to modify patent laws, or more importantly regulations. With reference to the ‘chip wars’ this is an interesting Op-ed on the ZTE mess and it argues that Chinese business models need a big overhaul.
    (worth a read)
    http://www.scmp.com/week-asia/opinion/article/2146748/zte-mess-shows-need-change-chinese-way-doing-business

    Liked by 2 people

  32. Questions to ponder:

    Who gains more from each day of delay in reaching a Deal: China or America?
    • Whose relative Leverage grows?
    • Will Trade Sanctions begin to bite?

    How does delay affect trade and deals with other countries for China and America?
    • China’s Belt & Road “partnering”
    • America’s upside for Trade Deals with NAFTA, EU, Mideast and Asian partners

    Which countries will “lose” their Exports-to-China that become America’s Exports-to-China?

    Which countries will want to “secure” deals with America that lock in trade before a China Deal might put trade in jeopardy or raise the bar for provisions of a pending Deal with America?

    Liked by 2 people

  33. The obvious consequence is, there will be no tariff on $50B Chinese goods on 6/1.

    Like

  34. Pete says:

    This joint statement sounded like China played the US – NK summit cardi n this trade talk. I will be surprised if China did not use this card to soften Trump’s rhetoric that China must engage in ‘fair and reciprocal” trade with the US. If that is the case, the US should have countered with the militarization of South China Sea which Xi Jinping promised China will never do. I’ve placed a check mark in China’s win column.

    Like

  35. A2 says:

    This may or may not be related to the US/China trade negotiations (insert ‘there are no coincidences” quote), but its quaking like a duck.

    “A North Korean diplomat responsible for Southeast Asian affairs arrived in Beijing on Saturday, sparking speculation that he may visit Singapore ahead of a planned summit between U.S. President Donald Trump and North Korean leader Kim Jong-un”

    “North Korean Vice Foreign Minister Choe Hui-chol was whisked away by his country’s embassy officials in Beijing upon his arrival at Beijing Capital International Airport earlier in the day without answering questions from reporters.

    Choe’s trip came shortly after North Korea threatened to cancel the June 12 summit in Singapore over ongoing air combat drills between South Korea and the U.S. The North has also protested U.S. demands for the “unilateral” dismantlement of its nuclear weapons program.”

    (Just a friendly word between the avowed ‘blood brothers)

    http://english.yonhapnews.co.kr/news/2018/05/19/0200000000AEN20180519001500320.html?sns=tw

    Liked by 1 person

    • fred5678 says:

      Nice catch — but won’t make Sunday talk shows, either, where it will be “failure of Trump diplomacy” theme and no mention of trade talks statement.

      Like

  36. LetsPlay says:

    Yes, this is definitive winning! China is in a tough spot trying to keep it’s engines running on all twelve cylinders with a booming population that has increasing expectations of the ChiCom Party. Importing Ag and other food products will help them greatly in feeding their hoard. Patent protections will hopefully give more bite to the law in going after the many Chinese workers and students in the US who have access to many latest developments. Now if the idiots in sensitive areas would forget the “diversity” thing and hold strict standards to who gets access to that info/data would be a big step forward.

    It’s also nice to see “NO MENTION” of Tom Donohue and the US Chamber of Commerce. That is one due I despise. He should retire. Eighty years old and he just won’t give it up! Ridiculous!

    Like

  37. LetsPlay says:

    Correction: “This is one dude I despise.”

    Like

  38. fred5678 says:

    Joe Biden had the best comment about this deal.

    Like

    • jello333 says:

      I think Trump would have won regardless, but I really think we should be thankful that Hillary did NOT drop out of the race, allowing Biden to jump in. Yeah, I think we would have still won, but it would have been much harder…. mainly because Joe (despite all his flaws) seems like a normal guy in many ways, not at all evil crazy robot like Hillary.

      Like

  39. RH says:

    POTUS talking about China and so far China is winning on trade. China has used its province North Korea on all US president to hold the US hostage on trade and it is doing the same thing with Trump.

    I am not impressed with Trump on China Trade issues or NAFTA and it looks like Trump has already got suckered into North Korea peace nonsense just like China wants.

    Like

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