Nailed It – Navarro Discusses U.S-China Trade Re-engagement: “Seven Prior Chapters Now Starting Point”…

Excellent news from White House manufacturing policy advisor Peter Navarro as he discusses the re-engagement in U.S. and China trade discussions. Great INFO.

You won’t see this interview highlighted by MSM.  As we anticipated the prior 150 page agreement negotiated by USTR Robert Lighthizer and Vice-Premier Liu He, previously dismissed by Beijing after three months of intense discussions, is now the starting point for new talks.  This means the Chinese have acquiesced to the prior terms they rebuked.

The seven chapters, each assigned to a specific trade sector, are the baseline for Lighthizer and Liu He to re-engage.  Excellent news from the position of the U.S. team.

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The CNBC knucklehead injecting about a Hauwei compromise was quickly corrected by Navarro. The Commerce Department restrictions and process for 90-day licenses to do business with Hauwei remains unchanged.

On May 20th, 2019, Commerce Secretary Wilbur Ross announced the U.S. Dept. of Commerce, Bureau of Industry and Security, would be issuing Temporary General License (TGL) permits for U.S. business interests who wish to engage in commercial exchanges with Huawei.

The Commerce Department reviews each request, outlines what products can be exchanged, and restricts the company to a transaction of product approved by the license.  Each license lasts 90-days.

“The Temporary General License grants operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services,” said Secretary of Commerce Wilbur Ross. “In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks.”  (link)

Additionally, with the exception of the transactions explicitly authorized by the Temporary General License, any exports, reexports, or in country transfers of items subject to the Export Administration Regulation (EAR) will continue to require a special license granted after a review by the Bureau of Industry and Security (BIS) under a presumption of denial.

Under the new regulations any company wishing to engage in a commercial transaction with Huawei has to apply and gain pre-approval from the U.S. Commerce Department.  Hence, the issuance of a 90-day license.  Any product or service not approved by the license is not allowed to be exchanged.

This process began on May 20th and still exists today.  This process is what President Trump was referencing when he announced the U.S. and China would restart trade negotiations as it related to Huawei.  Specifically when the president said: “Ross will evaluate each request”.

Nothing can be purchased from, or sold to, Huawei Technologies Co. Ltd and/or its sixty-eight non-U.S. affiliates, without getting permission from the U.S. commerce department.  Nothing in the agreement between President Trump and Chinese Chairman Xi Jinping changes that process.

Navarro is now confirming Beijing has accepted the closed chapters of the prior negotiation as a starting point between the Chinese and U.S. teams.  The agreements between all parties, prior to the collapse, is now the agreed starting point.

This indicates the hawks in Beijing, those who formerly balked, have now retreated from their antagonistic position toward the agreement negotiated by Liu He.

It is likely they saw growing ramifications and consequences over the past 30+ days.  In essence, after getting a taste of what was coming, Beijing saw a cycle of continual collapse as their future; they had no option but to try and stop the downward spiral.

This internal outlook, overlaying their historic zero-sum perspective, would make sense given the latest developments; partly because the reality of an increasingly losing position was their new baseline. A cessation of further damage was their best scenario.

Summary: Trump forced Beijing to see less-loss as the better loss.

However, as noted in the attitude of President Trump, he retains the larger tariff level despite China’s re-engagement.  Trump has allowed the restart itself to be the face-saving Xi needed, yet he retains the prior tariff gains.   Team Trump yielded nothing back.

Do not take this dynamic lightly.  China has never negotiated for, nor accepted, less-loss before.  Understanding this is new ground for them we can only imagine the anxiety within internal discussions.  Vice-Premier Liu He cannot turn to the Beijing Hawks and say: ‘I told you so’. He can only start again and hope the same outcome does not repeat.

Both teams know the prior closed chapters were negotiated in good faith by Liu He, Robert Lightizer and Mnuchin.  It wasn’t the U.S. who walked away from prior commitments. Therefore it makes additional sense for Chairman Xi to offer the Ag purchases as a show of good faith; and, in turn, President Trump gives the optics of compromise on high-tech.

Returning to the original point of collapse, the stickler point was/is the enforcement mechanism if China cheats.  This is where Lighthizer had built sector-by-sector, product-by-product, escalating and countervailing tariffs into the compliance chapters.

Unlike traditional trade agreements with one enforcement chapter that encompasses all of the sectors within the aggregate agreement, Bob Lighthizer built specific enforcement mechanisms into each sector.  Essentially, each product had it’s own compliance requirements unique to the sector of trade.

That multi-layered compliance is where China recoiled because they saw the U.S. as having ultimate decision-making about whether the rules were being followed.  However, that construct was/is the unidirectional price Lighthizer was applying due to the history of Chinese duplicity and cheating.

Any U.S. company (or U.S. entity) harmed by Chinese trade practices (ie. ‘cheating‘, ‘theft’, ‘coercion’, etc.) would have a set of enforcement provisions to protect their interests specific to their unique sector inside the agreement.  The scale of this approach is rather overwhelming to consider; however, as Lighthizer told congress this is the only way to insure compliance and protect very diverse U.S. trade interests.

You have to write the agreement while predicting the other party will attempt to lie, cheat and steal; and they will do so with the sanctioning of the communist government.

Lost in all of the discussions by western media is the fact that no-one has ever attempted to structure a comprehensive and enforceable trade agreement with China before.  What the U.S. team is attempting will be the road-map for all other nations who will likely write similar agreements of their own.

Writing a trade agreement between a free-market (USA) and a controlled-market (China) is where the challenge lies.  One of the inherent issues will always be how the free-market system can hold the controlled-market system accountable if they cheat.

Given the controlled-market’s governmental support for the cheaters, the accountability will naturally have to come from outside the system.   It remains to be seen if it can be done.

Arguably President Trump has a disposition that he doesn’t see how a deal is possible. However, Trump is willing to allow Lighthizer, who really is brilliant (along with Secretary Mnuchin and Secretary Ross), plenty of space to approach this problem with unique solutions.

As President Trump just said: “The quality of the transaction is far more important to me than speed. I am in no hurry.”

The tariffs will continue until behavior improves.

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This entry was posted in Big Government, China, Communist, Decepticons, Donald Trump, Economy, Election 2020, G20, G20 - 2019 Osaka, Hong Kong, Japan, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

85 Responses to Nailed It – Navarro Discusses U.S-China Trade Re-engagement: “Seven Prior Chapters Now Starting Point”…

  1. MelH says:

    Don’t you wonder what grand deflection the Left intends, given this great news? Thanks, SundanceI It’s a mystery, how you are so speedy at keeping us up to date on what REALLY matters.

    Liked by 17 people

    • SwampRatTerrier says:

      Well if they’re all as DUMB and those DNC-CNBC dunces….news readers (as the Brits call them)…..nevermind.

      They’ll never get out of the starting gate for tripping over their own tongues.

      Liked by 3 people

    • swimeasy says:

      Mel in today’s soap episode, seems they are focused on melting down over American tanks going through DC for POTUS’ 4th celebration of America.

      Yes indeed Sundance, thank for all you do! You most definitely called this scenario. No doubt Beijing had to see the hemorrhaging itself and reminded by POTUS he was in a position to sever another artery.

      Liked by 3 people

    • sturmudgeon says:

      Would somebody on The Tree be willing to explain to an old duffer… exactly WHAT this 5G business means? Thanks.

      Like

      • formerdem says:

        remember downloading on one of those old modems that were so slow, 9600 baud? and compare that to downloading while you are on Wifi. Wifi is faster but also it is a shared system, and if you made all the towers and routers you could fiddle with their insides. So likewise, the next step to 5G is going to be like that transition. Everything that intercommunicates in this system is going to go wayyyyy faster but also, whoever actually sets up the “towers and routers” is going to be in a position of great control. It isn’t quite invented yet – at the moment 5G is more of a roadmap as I understand: rules, standards, but the hardware is not invented. Whoever invents it and gets their stuff out first is going to be in the center of things. Correct me please, folks.

        Like

      • fthoma2014 says:

        Google can be your friend, sometimes.

        Like

  2. One of the strongest things that President Trump says – and, says repeatedly – is: “I am in no hurry.”

    He is a strong, experienced, knowledgeable negotiator with a lifetime of actual business experience. We have never had a Chief Executive Officer like this before, literally in the entire history of our country.

    Liked by 40 people

    • SwampRatTerrier says:

      God is not the God of Hurry Up.

      Satan on the other hand is all about speed, and Hurry Up.

      Liked by 1 person

    • swimeasy says:

      I agree Mike. Applying private sector business principles to government like measurable outcomes that can be tracked. No wonder the bureaucrats are flipping out.

      Liked by 6 people

      • But, looking forward past 2020 and then 2024, I do see “a serious and permanent sea-change” in not only American but also World politics: citizens around the planet can plainly see that “elected officials,” most especially in Chief Executive Officer positions, need to have “serious qualifications.”

        We have lots and lots of things “on the books” right now … NAFTA, the TPP, most of the trade agreements cooked up by lobbyists, the list goes on and on … which are truly terrible situations because the people who negotiated them didn’t have the faintest idea what they were doing. They had no connection whatsoever with the actual environment that would be directly impacted by their actions. We’ve got lots of military situations that are exactly the same … “the Iran agreement,” anyone?

        We let these things happen, in major part, because we hired people whose major qualification was that they know how to get elected. But, going forward, I perceive that the rank-and-file people of this world(!) are suddenly going to become a lot more selective … and demanding.

        I’ve said repeatedly that I believe that future historians are going to write more books about the Presidency of Donald Trump than they did about Abraham Lincoln. Because, “once again, we are living in Interesting Times.” Because we’re smack-dab in the middle of it, of course we don’t see it clearly. But I submit that we are witnessing a Sea Change. Politics, and governance itself, is going to change forever. And not just in America.

        Liked by 5 people

        • underwhelmingposter says:

          I agree that history will judge PDJT kindly, and deservedly so. But I think the waters that President Lincoln waded through places him on top right now. He faced the same type of issues that PDJT does now, except they were here and in his face. There was no time for him to wait. It was “hurry up time” per another poster. One of the things I find most notable with President Lincoln was that his cabinet was made up of his adversaries. He felt if he could convince the cabinet, then the action was valid.
          PDJT trusts his cabinet, rightly so, but he always has his finger on the pulse. During interviews, he openly speaks about many subjects without having to pause, or thing, or ponder. I find that fascinating!

          Like

        • sturmudgeon says:

          Mike: ” which are truly terrible situations because the people who negotiated them didn’t have the faintest idea what they were doing. They had no connection whatsoever with the actual environment that would be directly impacted by their actions.” POST AWARD OF THE DAY!! Therein lies ALL of the world’s problems.

          Liked by 1 person

    • Orville R. Bacher says:

      Sundance
      “China has never negotiated for, nor accepted, less-loss before.”
      China has only faced a “community organizer”, a “figure-head with his Daddy’s last name”, and a “grifter that would sell his mother’s false teeth”. Never, ever has China faced a Businessman with the experience and tenacity of Donald Trump.
      Trump’s strategy of isolating China from the herd is magnificent. Diplomatic rope-a-dope.

      Liked by 7 people

    • Love it. “I’m in no hurry..” Contrasted in my memories to one Sec. of State Kerry, hobbling into negotiations on crutches. In such a panic of hurry to sell out America, he breaks his leg crashing while wobble-wheeling a bicycle down a hill in France.

      Liked by 3 people

    • underwhelmingposter says:

      Does anyone recall the movie “Dave” where a double for the President was found, one who ran a small business? He set out to look at things rationally, without the lobbyists and the re-elect me now bureaucrats in the room. Just a person he trusted! The outcome bothered a lot of people, but the budget was balanced. Fantasy and not likely in reality, but it spoke to business people doing good work, not the hand me your money politicians!

      Like

  3. TheWanderingStar says:

    David Faber: “I’ve been doing this a long time!”

    C’mon man. You’ve been reading news stories and writing stories about what is going on in the economy/industry for a long time.

    Liked by 6 people

    • The Boss says:

      Faber and his gal pal are one-trick media whores. That was the most pathetic excuse for a business interview I’ve seen since…yesterday.

      Liked by 2 people

  4. vee says:

    These tow doing the interview have such a hostile attitude why waste time with them both. he is such a smart man I dont know why he wasted his time with them.

    Like

    • tom f says:

      Disagree vee, Mr. Navarro did it for us, the American people.
      Not a waste of time at all. Without this interview who would have known the truth?

      Liked by 1 person

  5. LBH says:

    Interesting that President Trump shakes hands with Chairman Xi with his hand in an “over”position. Usually, he takes the under. Optics are everything and I believe he’s sending a message.

    Liked by 6 people

  6. clulessgrandpa says:

    Thank you, Sundance! I love reading the back story of all these negotiations. I love the leverage Trump is exploiting! Just like when he bought MarALago. Read about that in his book, The Art of the Deal.

    Liked by 3 people

    • I bought a copy of The Art of the Deal first in paperback. Then, having carefully read it, I bought all of “The Donald’s™” books in hardcover.

      Spend the time. They are well worth reading. “How did this man manage to make billions of dollars for himself and for his associates?” Well, it certainly wasn’t an accident. And the passion(!) that he brought to the world of business, today he also brings to the Presidency. “We live in very(!) interesting times.”

      Liked by 2 people

  7. ristvan says:

    This outcome was predictable; the timing wasn’t. Much faster than I had imagined. Xi put down the Politbureau ‘revolt” in just a couple of months! Lead negotiator Liu He is his #2. So Xi knew and approved of what then got ‘rejected’. The pullback can only be interpreted as Politbureau revolt.

    Means things are worse inside China than we imagined. One example, African Swine Fever, aka pig ebola. Estimates just a few months ago were China would lose 25% of herd. Now credible estimates are >40%.

    Liked by 13 people

    • gawntrail says:

      Billions of people with rumbling tummies are probably a bit difficult to deal with. The most civilized among us would kill to feed our kids. Beijing must be taking some serious notes on what a very hungry and irate populace would be. Even the troops have families. It doesn’t sound like its going to end well, regardless of the trade outcome.

      Like

    • Dutchman says:

      ristvan, I have been speculating for weeks that the situation inside China might be much worse than we know.

      I don’t follow the inner working of the CCP, or the detailed #’s. I have read that just the ‘ticket price’for maintaing the CCP elites and families is over a,TRILLION $’s a year.

      Their thrice cooked books means THEY may not even know exactly how bad it is. They may be about to strangle on their OBOR, and military investment commitments added on may have them way overextended.

      I THINK its possible a collapse could come sooner than anyone expects, and the world will be ‘shocked’ when it does.

      Granted, it could be 6 mos. to 2 years or more away. IMHO there eas no ‘face saving’ in Xi returning to the table, and I believe he and CCP have calculated that a DJT loss in 2020 is either unlikely, or will come too late to allow CCP to avoid implosion.

      Either way, he is back negotiating cause he can’t afford NOT to, and that says to me CCP is in SERIOUS trouble, and starting to read the writing on the wall.

      Liked by 10 people

      • riverelf says:

        Agreed Dutchman, I was absolutely floored that Xi went to the G20 committed to getting trade talks back no matter what. I expected this to take four, five, six months, not one +. That, and Xi’s NK visit, just reeks of uncommon desperation.
        May God bless our Wolverines.

        Liked by 3 people

        • Dutchman says:

          As I have posted before, “bankruptcy occurs very slowly, and then all at once.”
          But the thing is, having gone thru it, you SEE it coming, its NOT a surprise to YOU.
          Worked for several different companies where rumors,were flying, for months that the company was “in trouble”. Finally, the big “Boss” called a company meeting.
          Said “Yes, we have been having tough times, but we have weathered the storm, just wanted to reassure everyone, smooth sailing, jobs secure!”
          Next day, padlock on door. And this happened at 2, or 3 DIFFERENT companies.
          Point is, I was surprised at Xi’s,recent pronouncement to his citisens to prepare for belt tightening. Very uncharacteristic and one of the things that caused me to think CCP, Xi MAY already see the writing on the wall?

          Bigger they are, harder they fall. CCP has a MASSIVE ‘nut’ i.e. overhead they MUST pay out each month, just to keep going.

          Methinks its crunch time, soon.

          Liked by 1 person

          • underwhelmingposter says:

            Personal bankruptcy works the same way. It is the denial of the reality that the light at the end of the tunnel is the train coming toward you. This may have been going on in China. But simple denial of the truth is one facet of the bankruptcy process.
            (Of course there are those that file for bankruptcy as often as possible, stiffing many folks each time. Some contractors are notorious for this ploy!)

            Like

            • Dutchman says:

              I well understand, and for Chinas CCP and Xi, to go from where they were, to where theycare in 2 1/2 years must be,quite a shock.
              With Brics, they were,establishing their own counterpart to the IMF/World Bank.
              With OBOR, they were aquiring ports around the world, second biggest economy and set to pass us in few years, they were on FIRE.

              And now?
              “Ain’t funny how fallin’,
              Feels a LOT like flyin’,
              Right up to the end!”

              Like

      • When Communism was abandoned by the Soviets, “it went with a whimper, not with a shout …” thanks in large part to the combined efforts of Boris Yeltsin and Mikhail Gorbachev.

        Let us therefore remember that, in the ancient history of China, “Communism” in its entirety is also “just the barest ‘blip.'” It actually isn’t a sustainable economic strategy, and “the actual China” will probably very-soon shake it off.

        The question therefore becomes – “is Chairman Xi … Gorbachev?” Has Destiny tasked him with the dissolution of the failed form of governance over which he now presides? And if so, is he capable of the task?

        Like

        • Dutchman says:

          Does the man make the historic moment, or vice versa? I think Reagan was confident that it didn’t really MATTER who was ‘in power’, he was never truly concerned about USSR resorting to war.
          And I suspect PDJT feels the same way with Xi and CCP. Xi can ‘manage’ the collapse gracefully or aqwardly, but he WILL have to manage the collapse. Or, his,succesor will. He has no choice.

          THEY have no choice. And bullets simply doesn’t do ANYTHING to help the situation. If not Xi, another will step forward, to manage the collapse,..what other alternative is there?

          Like

        • underwhelmingposter says:

          The amazing thing about Gorbachev was that he was allowed to live and retire!
          China has an immensely rich history.

          Like

  8. DJT2020 says:

    That was a serious beat down by Navarro

    Liked by 4 people

  9. Paul Hanlon says:

    Wow, they really can’t bear to give President Trump any credit at all. They both looked like they were having a cow. I thought these people were supposed to be cheerleaders for the American economy. All credit to Peter Navarro for remaining calm.

    Liked by 7 people

  10. ilcon says:

    The D dude must be heavily invested in China.

    Like

  11. val66 says:

    So now that China’s accepted the 7 Chapters and the punishment mechanisms, what is there left to negotiate on? What else does the US & China disagree on? Does Trump sense weakness and is now demanding more things from China?

    Like

    • underwhelmingposter says:

      IMO, PDJT would not work that way. The art of the deal does not mean you beat your opponent down. The best deal is where BOTH the US of A and China are successful going forward. If China fails, it hurts the US of A by $500,000,000/ year in products that Americans want, and $100,000,000 in sales American Companies plan for.

      PDJT knows that. I do not think we will be looking at him humiliating Xi (or anyone for that matter). That is not the art of the deal.

      Like

  12. Henry chance says:

    Every culture has a negotiating style. Some parties bring gifts. Chinese are known for reversals. Trump is BOSS. America has the money and Trump calls the shots. China is playing the long game and not smart enough to see it hurts them. Companies see China as a risk and are LEAVING. That means even if tariff treaty is settled, business will not be strong.

    Liked by 1 person

  13. Dutchman says:

    “Arguably, PDJT doesn’t see how such an agreement is possible.”
    Neither do I. I have been in a situation, trying to make a ‘deal’ with ‘junkies’ who will lie, cheat steal from their own grandmother.

    And I was just doing a ‘one off’ type ‘deal’; an ‘exchange’. “I trade you THIS, for THAT.” Need an accomplice, with scoped rifle on a roof, overseeing the transaction, and even THATS no guarantee.

    How you structure an ongoing system for billions of deals with dishonorable liars and cheaters, rediculous. Can’t be done, IMHO.

    BUT, if we want to use the process of negotiations to give TIME to effect a global reset, and collect Billions and Billions in tarifs in the meantime, well!

    I’m “all in” and ALL in favor of that.
    Mirror tarifs remains the long term goal, and CCP run China simply can not function in that trading environment.

    RIP, CCP.

    Liked by 6 people

    • Stillwater says:

      This whole reversal of China’s CCP worked out for the best.

      The reversal by China placed the U.S. in a better position:

      – provided opportunity to increase tariffs
      – plan out tariffs on the remaining 300 billion or so (create more leverage / Democles sword)
      – 5g restrictions targeting Huawei, etc. (create more leverage)
      – causing China to drop the panda mask and threaten U.S. corporations, revealing their true communist nature.
      – the above causes (1) uncertainty for U.S. corporations causing them to start to leave for other countries and (2) introduced tangible pain into China CCP historical memory so they get a taste of what the consequence for their actions feels like. A good memory to have as we proceed to future negotiations.
      – Trump offers China a way out to restart negotiations from former agreed-upon positons. More AG purchases.
      – China CCP’s new realization of their tenuous position gave Trump the opportunity to leverage that to continue with Kim Jong-un’s hostage rescue, meet at DMZ, and cross into North Korea… showing both bravery, trust, willingness to offer hand in friendship of former (apparent) foe.
      – This gave another object lesson for other countries to see on how Trump can be both tough and magnanimous if they behave appropriately (Iran, Turkey, Venezuela, Europe).

      Liked by 2 people

      • Dutchman says:

        Yeah its sweet to watch a master in action.
        On the Ag, if I follow correctly when China,’walked away’ in a snit, they said over their shoulder “and we’re not buying your Ag products, either!”

        It was,silly bluster, everyone knows they HAVE to have our soybeans, no one else can fill the void, and with their swine flu and crop infestation they are going to HAVE to increase their imports from US, cause our farmers feed the world.

        So again, I don’t see any ‘face saving’, in fact I see Xi ‘pantsed’ and standing with them around his ankles.
        Before G20, China official news said “Don’t DARE,bring up H.K. protests or Taiwan at meeting.

        PDJT good friend Abe brought it up, so China couldn’t fake some “cultural insensitivity” crap, but EVERYONE knew it was coming from PDJT.

        In years past, China delegation would have left in a huff, making a big deal out of it. This time, no reaction.

        MORE ‘loss of face’ or humiliation. A totalitarian government can NOT survive humiliation, or appearing weak.
        It is their ‘death knell’.
        IMHO,…I don’t think they think they can survive thru 2020.

        Or, they have concluded PDJT will prevail in election, and know they can not survive thru 2024.
        Sucks to be them!

        Liked by 4 people

        • Stillwater says:

          Good points.

          I forgot about Hong Kong. The whole U.S. / China trade situation and China’s bleed of dollars caused them to try to squeeze Hong Kong, dropping the Panda mask again for the world to see. And as you said, Trump deftly had Abe mention the H.K. protests. More leverage created for meeting with China at G20.

          Like

          • Dutchman says:

            IMHO, its beyond, or perhaps not even ABOUT “leverage”.
            You manuever for ‘leverage’ to gain a better negotiating position.

            But, if you start out KNOWING the end point ISN’T a “Deal”, because your ‘opponent’can NEVER agree to your terms, and you can never trust them to, than its NOT about ‘leverage’ to improve your negotiating position.

            Its about CRUSHING your opponent. What PDJT is doing, is showing the beauty of “Economic security IS National Security”.

            Previous admins, both Bush and Obama adopted the ‘neocon’ lie of ‘regime change’ through military invasion (Iraq, afcrapistan) or ‘toppling’ thru not so undercover espionage operations, like Ukraine, Syria, Lybia.
            PDJT never SAYS ‘regime change’is his goal; he says “Hey, look I’m JUST looking for a FAIR deal! You represent YOUR countries interest and try to get the best deal you can for your people, thats all I’m doing!
            And hey, I LIKE you! Its nothing PERSONAL, just Business!”

            And, objectively all of that is true. Its not HIS fault that the CCP centrally controlled economy is,extreamly frail, and can NOT ‘work’ UNLESS they cheat.
            IMHO, regime change IS the only logical end point, and as a VSG, DJT KNOWS this, even though he never SAYS it.

            Liked by 5 people

            • ichicinnabar says:

              Dutchman,

              “But, if you start out KNOWING the end point ISN’T a “Deal”, because your ‘opponent’ can NEVER agree to your terms, and you can never trust them to, than its NOT about ‘leverage’ to improve your negotiating position.

              Its about CRUSHING your opponent.”

              Excellent. You have got to the core of where our lion is going.

              Any trade agreement will only last as long as President Trump is in office to keep an eye on it with his team. Once the next president takes office, China will return to lying, cheating, stealing, bribing and threatening to get what they want. They have to be crushed to the point they no longer have the power to economically dominate America and the world again. Out of that, regime change will probably come.

              Liked by 1 person

              • Dutchman says:

                If PDJT is successful ( by the end of his second term) in establishing mirror tarifs with all countries (and since we are where everyone wants to sell, he SHOULD be able to),…
                It would be a very difficult system to undo. Countries would only tarif to protect defence industries. Mirror tarifs by U.S. would force all countries to drop tarifs on all other products. It would be,TRUE global free and fair trade.

                And just as CCP controlled China would be unable to compete in such an environment, no centralist controlled (conmunist) country would be able to.
                Open markets means open societies, and so PDJT is promoting free market capitalism around the world.

                Liked by 1 person

      • ms100 says:

        There are many more countries that are corrupt like China than honest ones with high social trust and capital. Unfortunately, even the honest ones are being undermined by their increasingly traitorous politicians. Bringing in immigrants from corrupt, crime ridden 3rd world countries doesn’t help. The only global solution I’d like to see is the elimination of corruption and the replacement of traitorous politicians.

        Liked by 1 person

    • john says:

      “BUT, if we want to use the process of negotiations to give TIME to effect a global reset, and collect Billions and Billions in tarifs in the meantime, well!”

      This is the goal of this negotiation in a nutshell. Time to reset the supply chain. China will never be able to live up to the terms of any agreement that isnt one-sided in their favor. We know it, President Trump knows it, China knows it and the multinationals know it. Even these two doofuses doing the interview know it, though they have a vested interest in We the People not finding out the truth.

      Like

      • Dutchman says:

        Yup, thats what I think. And no hurry.
        China has been taking 500 billion from us for Many, MANY years, in addition to taking jobs. Building THEIR infrastructure at the,expence of ours.
        The longer this,goes on, the more compensation we get; think of the tarifs as an ongoing fine, for past crimes, or as,’victim compensation’.

        Once the collapse occurs, we won’t be,able,to collect any more fines, from an impoverished nation. Hence, I’m fine with PDJT leaving the last 350 B on the table, for now and maybe for good.

        Liked by 1 person

    • underwhelmingposter says:

      China failing does not help anyone in the US of A.

      It sound like the option (threat if you like) of adding tariffs in specific markets will be included. With all the financial data available these days, it will be fairly easy to see if there is any discrepancy.

      Again, the art of the deal is to both win and be more successful as a result. If one negotiates a deal from power and bullies the client to accept a very weak position, who benefits if they fo under. It may cause you (the one who bullied) to lose your business as well.

      Like

      • Dutchman says:

        There is CCP, and then there is China. Under CCP rule, innovative thought and actions are suppressed, and corruption is rewarded. A CCP, centrally run conmunist China can NOT compete, if they play ‘fair’.

        China prevailing sure doesn’t help anyone in USA, except mitch and co.

        Its an existencial battle, and its China that has structured it that way. There is no “win/win” to be had here, with a CCP controlled China. Now, once they relinquish control of their citisenry, (allowing diverse opinions, in order to produce innovation) and of their economy allowing private ownership and competition and open markets, well anythings possible. They ARE,a huge market.

        Like

  14. Boscobel says:

    So tie this in with the meeting with Kim. That seemed to go well although nothing tangible (apparently) came out of the meeting. However the Nork press had glowing accounts as detailed at CTH. DJT has a higher status and cooperation is in the air.

    Liked by 1 person

    • BrunoS says:

      In the same week, we have seen China lose a negotiation like never before and NK (as shown in their captioning of the Trump/Kim meeting video) essentially disavow their ideology of the past 65 years — the inevitable coming clash with the evil USA. History is being made while internal opposition whines about immigration problems they caused. I can only hope that future history books are just.

      Like

  15. Shop says:

    While the trade arrangement has most of the media attention, the biggest problem that China faces today is a US Dollar shortage. Note that the vast majority of ALL trade is done in US Dollars and facilitated by the offshore eurodollar system. President Trump can squeeze Xi really hard if he takes the step to prevent US investors from financing CCP entities. That would be calamitous for the totalitarian CCP.

    Like

  16. hellinahandbasket says:

    That blabbering head in a suit just couldn’t give our guy, President Trump one . single . concession for the great job he’s doing internationally. I don’t think I’ve heard one single word of encouragement or praise from that gaslighting-weapon-in-a-rectangle-box that’s sitting in my livingroom, FoxNews has thrown some praise, but I think they should give more segments of it, but then again – yeah, yeah …. I’m biased, because afterall – I’m in love with that special guy in the White House ♥♥♥♥{blush}♥♥♥♥

    Liked by 3 people

  17. Perot Conservative says:

    I don’t ever see China not cheating, just delaying cheating.

    People are falable, can be bribed, and government employees have no motivation to enforce uncomfortable or painful actions.

    And why would we want to strengthen our #1 adversary economically and politically? Especially a Godless regime that imprisons its citizens for organ harvesting?

    Why take the risks when companies can move to 3 dozen other non-histile nations?

    Liked by 1 person

    • Sammy Hains says:

      My biggest concern is the next Democrat or Chamber Crony Republican to be elected will be bought off by China/Wall Street to weaken the trade agreement.

      Liked by 1 person

    • ichicinnabar says:

      Perot,

      “I don’t ever see China not cheating, just delaying cheating.”

      That is it in a nutshell. This is the unalterable truth that President Trump’s approach is built on.

      Like

    • underwhelmingposter says:

      You cannot replace the world’s largest market with Viet Nam, Cambodia, S Korea, Philippines, Thailand etcetera. PDJT surely knows the perils. But in a deal, there is always a loss estimate (or fudge factor) that we always include. If the result opens China to $200,000,000,000 of US goods, that is a 100% increase. The result may not be as high as we would like ($500,000,000,000) but it would still significantly improve the bottom line of many US companies.

      Like

    • ms100 says:

      It’s not just the Chinese govt cheating, it’s the cheating mentality of the Chinese themselves and they bring that with them to other countries. I’m not saying they all cheat but a substantial number do. For example, there was a New Yorker article about Abacus Bank in NYC and it revealed that the Chinese community was engaged in routine tax evasion which the bank took into account when calculating real income for loans. Europe is having a huge problem with Chinese tax evasion. It’s very disturbing that Western countries are allowing corrupt Chinese to buy up properties as a way to launder their ill gotten gain which drives up property prices for citizens. And it’s not just Chinese, kleptocrats from corrupt countries across the world are allowed to buy Western assets and move there like the Chavez/Maduro Venezuelans.

      https://www.businessinsider.com/britain-2-billion-bill-eu-chinese-gangs-tax-dodge-2017-4
      https://www.reuters.com/investigates/special-report/icbc-spain/

      Like

  18. The mark of an expert is he calls his shots and they pocket as called.
    Sundance has been magnificent!

    Liked by 7 people

  19. rashomon says:

    Peter Navarro deserves a medal for tolerating that duo. If they were so smart, they would know how to run a smooth interview that informs the public on key issues rather than arguing with their subject, endlessly interrupting him and injecting points that do not lead to clarification. No wonder I don’t know their names; who cares?

    Liked by 3 people

  20. Pyrthroes says:

    Apropos an article by J.L. Young in “American Spectator” (July 1, 2019):

    Great minds think alike: “Trump has refined Jefferson’s economic reprisal strategy, repeatedly invoking sanctions, tariffs, and other trade-related acts. Trump’s expansive list includes tariffs on imported steel and aluminum (plus threats on autos); tariffs on both cheap-junk and high-tech Chinese imports; biting sanctions on Iran, Venezuela, North Korea, and on specific Chinese firms (Huawei); pre-USMCA threats to close the border with Canada and Mexico. … The difference between Jefferson and Trump is not intent, but the American Nation’s tremendous growth over two centuries, with all that that mplies.”

    Aimed at blocking exfiltration of American wealth rather than restricting imports, Trump’s actions are more sophisticated than Jefferson’s protectionist embargoes. (Recall Henry Clay’s integrative “American System” a generation later.) His broader goals include resolving decades-long NAFTA/TPP imbalances; curtailing illegal immigration; military/naval shows-of-force in lieu of directly engaging rogue States from Pyongyang to Teheran.

    In all this, DC’s disaffected, hyper-partisan elites have stood by, useless, since Truman’s Cold War Marshal Plan. As time wears on, like Jefferson, Trump’s follow-the-money appeal to Globalists’ self-interest will win the day. From EU kleptocrats to Saudi rentiers, Chinese and Russian nomenklaturas, dysfunctional Énarque wordsmiths will opt for comfort-and-safety over risky confrontation every time.

    Liked by 3 people

  21. TreeClimber says:

    I just can’t get over Lighthizer’s face in that photo. 😀 He looks like the cat that just got rewarded for eating the canary.

    Like

  22. Devil in the Blue Drapes says:

    Someone should’ve translated for Xi, what’s referred to in the American justice system, “The first offer is the best offer”.

    Like

  23. NoTwoSystemsOnlyOneChiCom says:

    While the negotiation resumes, HK smolders, and the Koreas do their thing, how much does this weigh on the negotiations? Probably nothing, but still.
    https://www.channelnewsasia.com/news/asia/taiwan-s-president-to-visit-us-in-july–angering-china-11680808

    Like

  24. dallasdan says:

    Re-starting the negotiations at the prior point of conclusion is completely contrary to what Xi had in mind, and perhaps what he genuinely thought he could accomplish. The result is him wearing a Denver omelette on his face for all the world to see.

    Liked by 1 person

  25. Mo says:

    The longer this negotiation drags on the better the outcomes for us will be.

    Like

  26. Everett Miller says:

    how telling that, in the midst of this stunning turn-of-play by Trump and his team, the idiot Tim Cook allows the PC children at Apple to lead them up the down staircase. To take production of the already mediocre MacBook Pro out of the USA and to Communist China–on purpose, at this time–shows a stunning lack of clarity. Sell Apple. . . .if you haven’t already.

    Like

  27. TradeBait says:

    The art of the deal when holding the winning hand.The Cabal wanted a NWO. They are getting one in spades and it is the opposite of what they devoted centuries to build.

    Liked by 1 person

  28. luke says:

    This guy is iron clad proof that DT is USA all the way. I didn’t know any better until a couple years ago other than R=good, D=bad. But the politicians that had the most charisma and power were immediately swallowed by the “powers that be” once notoriety was gained.

    Like

  29. luke says:

    This guy is iron clad proof that DT is USA all the way. I didn’t know any better until a couple years ago other than R=good, D=bad. But the politicians that had the most charisma and power were immediately swallowed by the “powers that be” once notoriety was gained.

    Like

  30. California Joe says:

    When Chairman Xi and CCP saw the 21 Democrat Clown Car running for President of the United States last week that knew that their last chance of beating President Trump and the tariffs got flushed down the crapper!

    Liked by 1 person

  31. Narayanan Subramanian says:

    Sir,
    Thanks for detailed description and discussion.
    Is this not tantamount to USA seeking ” Line Item Veto”
    provision and building into the agreement!
    Amazing, astute and foresight.
    GEOTU. MAGA.

    Like

  32. GLOBAL TRADE IMPLICATIONS:

    RE: Lost in all of the discussions by western media is the fact that no-one has ever attempted to structure a comprehensive and enforceable trade agreement with China before. What the U.S. team is attempting will be the road-map for all other nations who will likely write similar agreements of their own.

    IMPLICATIONS:

    NO NATION – including the EU – has the WILL or the STROKE to replicate-and-enforce the USA’s template for a Trade Deal with China. In fact, they have DE-INDUSTRIALIZED, and China has so ENTANGLED itself into the Infrastructure and Industry Supply Chains of these countries that they would be POWERLESS to enforce a Trade Spat Against China.

    They have only ONE OPTION to enforce ANY Trade Deal with China:
    • Commit to a BILATERAL Trade Deal with the USA.
    • Include a provision for BILATERAL ENFORCEMENT of any China violations vs any Partner.

    HOWEVER, to LEGITIMIZE this Option, they would have to FIRST COMPLETE their Trade Deal with the USA
    • BEFORE the USA completes its Trade Deal with China
    • ENABLING the USA to include the above provision in ITS Trade Deal with China.

    Like

  33. rioosodog says:

    Something that the MSM is not even aware of is this. So President Trump gives Hauwei low level chips and the press goes wild saying that Trump has “caved”. Trump goes back and tells the ChiComs THAT one thing is a big deal. Now the action has real “value” to the Chinese because the MSM has polished that ball till it is “bigger” and “shinier” that it was before they got their hands on it!

    Like

  34. I’m thinking the ag purchases are to feed his people. Assuming many food stuffs are running out since as SD states, the Chinese cannot even feed themselves.

    Like

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