USTR Releases Summary “Fact Sheet” Outlining U.S-China Phase One Agreement…

U.S. Trade Representative Robert Lighthizer has released a two-page summary fact sheet [pdf link here] outlining the “Phase-One” agreement in principal.  From research into the material the principal agreement appears to be an 86-page document covering nine chapters.  The fact sheet covers the top lines of seven chapters:

(Source pdf – and –  USTR Link)

For undisclosed reasons (we can guess, but probably shouldn’t on this one) the 86-page agreement is unlikely to be made public until after the USMCA completes the ratification process in congress (both chambers).

Given the politics in China, and Beijing’s position following the U.S. resolution vis-a-vis Hong Kong, it is doubtful there will be a high level signing ceremony.  Chairman Xi would appear weak internally as dominant President Trump would be seen as digging Eagle claws into vulnerable dragon.  Vice-Premier Liu He and USTR Lighthizer are likely to be visible faces.

It remains in President Trump’s strategic interests for Beijing to refuse being committed to granular specifics.   In a very unusual way ‘uncertainty‘ actually works in favor of the U.S. objective within this trade dynamic as future investment in China will be tenuous without those specifics.  An unstable ‘status quo’ is an advantage to Trump.

Because President Trump has flipped the leverage dynamic; and because hundreds of manufacturers are seeking alternatives to the risk China represents; the historic cunning and duplicity -China’s forte’- that creates distrust, actually works in favor of the U.S.

While many multinational investor interests will be watching, waiting, to see if China will (for the first time) live up to their words, President Trump will be providing alternatives and incentives…. while highlighting stability in North America.

The stock market responded exactly as would be expected on Friday to the announcement of the ‘phase-one’ agreement in principal… the market didn’t buy it, because everything remains tenuous at best.   This is an indication the multinationals would/will be more likely to follow the alternatives the USMCA provides.

The Wall Street multinationals not responding favorably is a very good sign.  This predicts an ongoing decoupling, which is exactly President Trump’s goal.

It really is remarkable. No-one else could have pulled this off.

Two years ago the Democrats were saying President Trump was being too hard on China… too disruptive to the world economy… Now those same Democrats say he’s not being hard enough; without realizing that’s exactly what President Trump wants them to say…

You gotta laugh.

Two years ago the Wall Street financial pundits were apoplectic, demanding President Trump resolve the China issue so they could get back to business…. President Trump now provides a resolution and those same financial voices are saying: meh, no thanks; we’ll wait to see what better stuff you’ve got planned; North America looks pretty good.

Too darned funny.

.

President Trump, Secretary Ross, Secretary Mnuchin and especially Robert Lighthizer will likely never get the full credit they deserve… but hey, then again, tell me the last time you knew the name of the United States Trade Ambassador?

Merry Christmas!

This entry was posted in ASEAN, Big Government, Big Stupid Government, Canada, China, Communist, Decepticons, Dem Hypocrisy, Donald Trump, Economy, European Union, Hong Kong, Legislation, media bias, Mexico, President Trump, Trade Deal, Uncategorized, United Kingdom (UK) and Great Britain, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

94 Responses to USTR Releases Summary “Fact Sheet” Outlining U.S-China Phase One Agreement…

  1. GrandpaM says:

    SD, the behavior of the Wall Street financial pundits falls under the category “You can’t make that schiff up.”

    Liked by 11 people

  2. ALEX says:

    Great work following all this. Very few who have done business and actually sign contracts with the Chinese haven’t heard the phrase ‘ things have changed’ as they back out after the fact, usually with all the goods.

    I’m in agreement Sundance.and this time we will leverage their bad faith and lies against them.

    MAGA

    Liked by 14 people

    • zaq123 says:

      A good friend works for one of the big banks in what he calls, Wealth Management. Not exactly sure what that means, nor do I care, but I’m thinking he deals with all the big money folks. Went to China with a group. Hated it. Said the Chinese s*cked. Everyone got sick and they all thought the Chinese poisoned their food. Said it was horrible being there, horrible dealing with them and everyone just wanted to go home. Imagine if we had done the same to them. Be an international incident.

      Like

  3. livefreeordieguy says:

    “It really is remarkable. No-one else could have pulled this off.”

    I normally shy away from absolutes like ‘no-one’ or ‘everybody’ as they are almost always hyperbole… Not in this case… Only PDJT could possibly engineer this and have the guts and resilience to pull it off… He adds to the legend almost daily.

    Liked by 19 people

    • GB Bari says:

      If there really IS someone else who could have and would have pulled this off, I hope he or she would step out of the shadows and agree to run to succeed President Trump in 2025.

      Liked by 5 people

      • FrankieZee says:

        I am starting to think there will never ne anyone like him. Trump needs to start grooming his son for this. But it is obvious that a career politician is not going to make it anymore. We need plain down to earth speaking people.

        Like

    • stripmallgrackle says:

      Trump doesn’t speak “President”. The last president to implement pro-growth economic and trade policies was also given to straight forward language that most people could understand easily. Something to factor in every four years when the parade of hopefuls shows up, hats in hand.

      Like

    • zaq123 says:

      Wasn’t it during the campaign, when he was ragging on the fact that we had diplomats, with no business experience negotiating our trade deals and giving away the farm? Didn’t he say, at one point, that he’d get the nastiest people he could find from Wall St to negotiate for the US. Folks he said, you wouldn’t invite for dinner, but they’d get the best deal anyone could imagine on behalf of the USA….I know it was something like that.

      Well, I don’t know Ross, Mnuchin, Lighthizer, et al are the nastiest guys on Wall St, but since day one, they’ve been putting on a clinic as to how this stuff should be done. They are making absolute fools of everyone that has come before them for at least, the last 30 years, if not longer.

      Liked by 2 people

  4. Trump is the point of the spear but Light, Nuch, Ross, Varo and the Koala are truly an All American Team!
    I did not believe that a Global reset of this magnitude was possible, I have never been so glad to be wrong.
    It is an honor just to watch this team of Economic Globetrotters at work.

    Liked by 16 people

    • Rockindubya says:

      What we are witnessing is the triumph of intelligence over “education.” Well, that and a group of warriors more concerned with America’s prosperity than their own s̶e̶l̶f̶ special-interests.

      Liked by 2 people

  5. jeans2nd says:

    Please let’s not forget the backstage influence of Dr Peter Navarro. The Communist Chinese never forgot Dr Navarro was always in the picture, waiting just offscreen.

    Will be interesting to watch the dynamics of the Communist Party elders with President-for-Life Xi Xingping. Xi’s tenure is always predicated on his lifespan, which in Communist China is always tenuous at best, especially for a President-for-Life.

    Liked by 8 people

  6. JohnCasper says:

    “It really is remarkable. No-one else could have pulled this off.”

    This is true. But Obama did pull off one big thing – the natzification of the FBI and CIA, etc.

    Liked by 3 people

  7. CountryDoc says:

    Every time I marvel with what POTUS is accomplishing, I also pray that we are developing 2nd and 3rd generation U.S. killer teams to continue the process and stand against the enemies abroad, and, more importantly, within.

    Secondary Enemies: China, EU, Russia
    Primary Enemies of U.S. citizens: Chamber of Commerce, Self Serving Politicians who give away american wealth for their own gain, Deep State, Socialist/Communists (and their influence on Education, Media). Soros. Muslim groups who are treating U.S. as Infidels.

    Liked by 10 people

  8. Free Speech says:

    China will honor none of it. Get past Wall Street Mitch and the Senate Peach Mint. Praying for POTUS.

    Liked by 1 person

    • Robert Smith says:

      But that’s ok isn’t it?

      The establishment wanted to see a “Deal.” So they have one – and China is going to break it causing tariffs. And the NDAA that was just approved has a whole bunch of required studies that will affect China greatly and cause yet more tariffs to rain down on them.

      Liked by 5 people

    • CountryDoc says:

      Free Speech, I agree. I I believe Trump knows it. But his continued dealing with China will continue to bring sunlight to their true character.

      Like

    • Pew-Anon says:

      If they don’t, then MORE TARIFFS!!! That was the goal all along.

      Like

  9. 2Alpha says:

    Been getting such a kick out of the financial channel ‘experts’ reactions.
    Most are wide-eyed, mouth agape, catching flies…😂

    The only intelligent assessment of Trump’s China Policy that I’ve seen over the last 2 years has come from Dobbs, Payne and Varney.
    (And of course SD on this site🥳)

    Liked by 12 people

  10. Bigly says:

    Democrats haven’t seen the deal but are oublically clamoring trump sold us out.

    So when leftist workers get jobs/orders what will the “working class democrat” think? How will they vote?

    Liked by 3 people

    • Robert Smith says:

      I think there’s few people out there who think Trump will sell the US out, lose, in a business deal with a foreign country.

      Like

    • ann says:

      You have asked the only question I’m able to respond to.

      We employ 40 〰️ union sheet metal workers plus a couple other craft unions.

      It was they, the younger workers largely, who told me, excitedly, about primary candidate Donald Trump .

      The closed meetings w union leaders are dominated by older , perhaps retired , I don’t know,men. Our architectural crews, about 70 percent of total, multiracial, but all male, tend to be younger. They are quite enthusiastic solid Pro MAGA & Big agenda supporters.

      President Trump’s vernacular style of humor, candor and unpretentious cut to the chase is like cool water after a twenty year plus drought of leaders who basically verbally and economically abused the people they claim to represent.

      So, IF the DNC’s plan of defeating US citizens by demographics, sanctuary states which in practice, nullify legitimate elections and eradicate our power as citizens, does not work, I believe we will prevail in 2020.

      I had hoped far better rules would be in place by 2020;
      Sketchy protocols such as no ID mail in voter registration and voting only by mail would be corrected.
      I want paper ballots, real places you go to vote, less social tension and more two way dialogue within our community town halls. Hasn’t happened yet.

      But I like our chances , esp with younger Americans . ❤️🇺🇸

      Liked by 10 people

    • Pew-Anon says:

      The Democrats.

      Accusing anyone of selling out to China.

      That’s rich.

      Liked by 2 people

  11. CaptainNonno says:

    The ‘Amazing Sundance’ show. Kudos, bro.

    Liked by 6 people

  12. ShainS says:

    Great analysis, Sundance.

    I don’t even think that “Scale” graphic is accurate. It needs to be something more along the lines of: . “This is what President Trump is doing” being firefighters rushing into and rescuing the country from a burning building; and
    . “This is what the media is focused on” being terrorists flying passenger jets into that building.

    Liked by 1 person

  13. luke says:

    SD how do I donate? Jesus you guys make so hard …send me a link please

    Liked by 3 people

  14. MakeAmericaGreat says:

    Fact: Full decoupling is coming, and the Dems are going to help POTUS get there (unwittingly).

    You’re next, EU. Brexit and the upcoming UK-USA trade deal will help extract us from that obsolete entity.

    Great stuff. Thanks Sundance!

    Liked by 6 people

  15. Tazok says:

    Part of the reason the stocks aren’t responding is because some optimism was already “priced-in” because we’re near the highs.

    Liked by 1 person

  16. Fools Gold says:

    What’s really cool and astounding is all this winning has happened inside 3 years with only a small group of trusted men and women on the Trump Team. Can you imagine what could have been if the Senate and House of Representatives fully backed President Trump with majorities in both chambers! Hell we might be tired of winning by now! 🤐

    Liked by 4 people

    • ann says:

      I know. Team Trump is brilliant. Resist is downright hostile to average Americans. Even if trillions are at stake, every individual in Congress makes a deliberate choice to block the needs and wants of their own people.

      Being a Democrat, or Wall St GOPe is an active, personal decision . Hiding inside the collectivist Resist Herd is weak and intellectually dishonest, in my opinion.

      Liked by 2 people

    • littleanniefannie says:

      Fully cooperated. If they had given him 25%. President Trump is a genius’ genius. As more and more workers realize the Democrat Party has sold them down the river in favor of their personal bank accounts and that PT has sacrificed part of his personal wealth in order to take from the rich (unions and their bosses, USCoC, politicians, etc) to give to the deserving (the workers), more and more support will come to PT. They are no longer buying the Democrat line of “we are the party of the working man”. Rather, they are responding to the “who you gonna believe, me or your lying eyes?” And look at their own bank accounts and realize that PT is the one helping them, not the Democrat Party or Uniparty.

      Liked by 2 people

  17. MD says:

    The market supposedly has been reacting to every word about trade deals with China since Trumps been in office. At the beginning of the year the Dow was 25K now 28K, steadily going up, down then up again like a staircase. This is a good sign that the markets know what is going on with trade and are not overly concerned with China. The swamp news media on TV on the other hand is their agenda is political not financial. They talk of a 200 point gain or loss in the dow as if it’s a huge deal. It’s less than 1%!!!! The main stocks to watch to see if signing of new trade deals are taking significant effect will be an increase in energy stocks. An increase in consumption indicates main street is plugging away and doing well.

    Liked by 1 person

  18. US says:

    What a privilege to have a visionary president. On June 16, 2015 he came down the escalator with Melania at Trump Tower and told US China was ripping us off and Mexico was not sending their best. A shockwave spread through the fruited plain as these words had not been spoken before. Trump delivered, against all obstruction. Our duty now is to return the huge favor and protect Donaldus Magnus from any harm by the CIA, FBI, DoS, Army (Vindman), DoJ and the Socialist Democrats. We have a man in full as our champion, God blessed America.

    Liked by 3 people

  19. A2 says:

    I’ve said everything I thought needed to be said on the last thread (and previous threads) on this ‘deal’, Including translating the PRC press announcements.

    The PRC has the ball in their court. No way they will comply, except sell and purchase agreement. That’s their between a rock and a hard place.

    Liked by 1 person

    • LafnH20 says:

      Isn’t that exactly what President Trump wants and expects, A2?

      With the “buy” giving our farmers the business they need; allowing The President to use tariff monies which had been used to make the farmers whole… for “other” things.

      Like

  20. Mike in a Truck says:

    Well one things for certain, the last 4 douche nozzles that occupied the Oval Office didnt do squat to stop the Red Chinese from ripping off the United States of America.In fact they were complicit and actively pursued it. Theres your “Collusion”.

    Liked by 1 person

    • A2 says:

      It may now seem to be collusion, but it was incompetence, not focussing on US interests, lots of that hopium, not wanting to take seriously since 2012 what Chairman Xi Mao2.0 was about.

      President Trump has changed that, by being realistic about the PRC, short term, and long term policies are about. The rest of the world is watching, and I see signs, slowly they will follow his lead.

      Like

      • A2 says:

        I’ve posted before about the Ag purchases. It does not rise above 20% of the trade deal.

        The rest has to do with other imports. To balance it they have to buy other stuff they need like energy. And then the compliance clauses.

        As I keep saying, the US is in the cats bird seat. Decoupling is ongoing and will continue.

        Stop listening to the talking heads, they know nothing. Just like on weibo, peeps are saying that their country has conceded too much. 🤣🤣🤣🤣

        Liked by 1 person

      • littleanniefannie says:

        Nice take on hope and change A2!

        Like

  21. Mo says:

    Economist living and teaching in Vietnam

    Liked by 1 person

  22. Doug Amos says:

    Try to find something as salient as this in a dozen paragraphs on Maggots N N? Thanks and in 2 short weeks it has become a Merry Christmas for the American worker; the little guys who go to the shop every day and don’t steal a dime!

    Liked by 2 people

  23. coltlending says:

    Two things struck me from that video:

    1) The Waiver only China has been given which Ibama gave China and POTUS can rescind is a Waiver that allows China to withhold “accounting results” in the case of some anomaly that occurs??

    Huh? Like false bookkeeping like booking sales of products not yet sold like Al Dunlap did while at the helm of Sunbeam?

    That’s an odd and dangerous Waiver if I’m getting the import of it correct.

    2) On the one hand they discuss POTUS stole the China Trade issue from the Democrats, then at the end of the segment they say POTUS has been talking about the trade issue with China for years. Isn’t it more correct to say POTUS has been talking about China trade issues for Decades???

    Like

    • littleanniefannie says:

      Talk is cheap. What POTUS is doing is called action. The only actions taken by the DemoncRAT Party is impeachment and changing the House rules to allow it to become a Stalinist state of its own.

      Liked by 1 person

  24. rodguy911 says:

    Trump is simply brilliant. He realizes that the chicoms need us more than we need them. He has set them up in situation where they either trade fairly or get a tarriff put on them for bad behavior.
    He’s spanking the naughty child.He knows as children they are undependable,lie, cheat and pretty much do whatever they feel like until disciplined.Trump pulled out the paddle and its obviously beginning to hurt.

    Liked by 1 person

    • CountryDoc says:

      I think the experience of learning the art of negotiating from the school of hard knocks (and a Military Academy) has served the Donald well. And it is no unrelated cooinidence that his children all naturally have the skills to run anything put in front of them, and the character to be trusted alone with whatever responsibility they are given.

      Liked by 3 people

  25. iknowono says:

    China has ordered all companies to turn over their encryption keys. How does that not totally negate any IP protection?

    Like

  26. Pew-Anon says:

    And the only enforcement mechanism that could possibly compel CCP compliance is the threat of more tariffs…which, as we all learned here, has been the goal all along.

    Like

  27. CountryDoc says:

    POTUS negotiation style from my observations:

    Everyone treated equally at first, give the benefit of the doubt.
    If you engage with him, you start as a friend
    He wants a win/win, and that’s what he expects from others
    He is transparent. If you are dishonest, he will tell you and everyone else
    The negotiating table is a no bull$&!t zone
    This makes everyone think his style is ungentlemanly, but he doesn’t go there unless warranted
    He always has many options to exercise, many layers of back up plans
    Once you break trust, you never get to come back to that level unless you earn it

    I don’t think he cares a whit about whether Xi is embarrassed.
    The focus of what the president is willing to give China is less and less.
    The good stuff U.S. has is off the table
    You can buy food from us. There are no trade secrets for you to steal
    He doesn’t expect China to follow their agreements, and has contingency plans

    As he wins trust of the U.S. voters, and the respect of the global economists, he has more freedom to act.
    Everyone who sticks their neck out to criticize or demonize him is handed back their Arse
    Even those who hate him, and can’t see to respect him, are beginning to fear him and be timid.
    Those with empty mob fostered criticisms against POTUS are finding less support around him
    As a results, POTUS is facing less resistance and more opportunity to win trust with logical American Voters.

    Liked by 2 people

    • bluenova1971 says:

      Agree Doc, with one caveat:
      I think POTUS will give Xi every opportunity possible to allow saving face, because he understands how important this is in the Chinese culture.

      That being said, I think another direct repudiation of an agreed-upon deal such as happened a few months ago will result in PDJT taking the gloves off.

      Like

  28. Jonah Kyle says:

    It’s ironic, and most possibly implausible, but if China committed itself to becoming a democracy, then it would indeed rival American economic power, and conceivably pass it based upon population advantage. And if it went further and became a constitutional republic of autonomous regions within China (their “states”), then it would be very difficult to compete, though at that time it would be a HEALTHY, not DESTRUCTIVE competitive environment.

    But unicorns don’t crap rainbow sherbet and pigs don’t need air control towers yet.

    Liked by 2 people

  29. CopperTop says:

    10:50 am. Goolsbee to Ed Henry says (paraphrase)

    “We have returned to where China was before and got nothing. They buy some farm products. We go back to buying from them and there’s a few tariffs. This get tough on China policy never really happened. Manufacturing has had 4 months of decline and this reflects what is happening in the world.”

    So the Univ of Chicago guy doesn’t agree that we are winning with China or that USMCA taking so long has anything to do with manufacturing slow down.

    Got it. I’ll stick with what I read here instead. Because CTH is right.

    Liked by 2 people

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