For the past several weeks China has been hoping to divide the trade dispute into two tracks thereby separating trade issues related to U.S. national security. Beijing wants, heck needs, the simple agricultural trade because they are food dependent and need that uninterrupted. However, they are strongly opposed to a comprehensive trade reset.
Beijing wants to wait-out President Trump on the more substantive issues surrounding: intellectual property rights; forced transfer of IP and manufacturing secrets; non tariff barriers including limited access to China’s controlled markets; and state run company subsidies that lead to market dumping and saturation.
Along with avoiding legal compliance issues, China wants to carve-out the complex stuff from a simple trade agreement.
However, when asked today about the possibility of carving out a partial deal President Trump emphatically said: “NO”. During a press conference with Australian Prime Minister Scott Morrison, President Trump said:
“We’re looking for a complete deal, I’m not looking for a partial deal. China has been starting to buy our agricultural product; if you noticed over the last week, and actually some very big purchases. But that’s not what I’m looking for, we’re looking for the big deal.
We’ve taken it to this level; we’re taking in billions and billions of dollars in tariffs; China has devalued their currency and they’re putting out a lot of money into their economy, and they have a very bad economy right now. And I don’t want them to have a bad economy, but it’s the worst in, they say, 57 years.
Two weeks ago it was the worst in twenty-two years, now it’s the worst in fifty-seven years and it’s only going to get worse. Their supply chain is being broken up very badly, and companies are leaving because they can’t pay the 25% -soon to be 30%- tariff. And we have 30% very shortly on $250 billion; we have another smaller number -as you know- on another $300 billion worth of products.
They would like to do something. As you know we’re talking a little bit this week, talking a lot next week, and then top people are going to be speaking the week following. But I’m not looking for a partial deal, I’m looking for a complete deal.”
In response to hearing the bad news, the deputy pandas’ cancelled a planned trip to farm country, packed up and the delegation went home early…. Sad Panda.
WASHINGTON – Chinese trade negotiators had a sudden change of plans Friday, canceling a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.
The Chinese delegation has changed its travel schedule and is headed back to China earlier than planned, according to Nicole Rolf, the Montana Farm Bureau Federation’s director of national affairs. There was no explanation as to why they were cutting their trip short, Rolf said.
Nebraska department of agriculture also said the Chinese officials called off a visit to farms in Nebraska.
U.S. Secretary of Agriculture Sonny Perdue confirmed just Thursday the meetings were in the works as a way for China to build goodwill with American farmers.
The Chinese delegation, led by Vice Minister for Agriculture and Rural Affairs Han Jun, had planned follow-on visits to Bozeman, Montana, and Omaha, Nebraska, CNBC previously reported. (read more)