Interesting delegation to accompany Secretary Ross: treasury, agriculture and energy. Small delegation, short trip, sounds like contract discussions.

From Camp David –  Today, President Donald J. Trump announced the members of an official delegation from the United States to China to discuss rebalancing the bilateral economic relationship between the United States and China.

These meetings will take place from June 2 through June 3, and are a continuation of the talks held in Beijing one month ago and in Washington two weeks ago.

Secretary of Commerce Wilbur Ross will lead the discussions, accompanied by United States Ambassador to China Terry Branstad, Under Secretary of Treasury for International Affairs David Malpass, Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney, and United States Trade Representative Chief Agricultural Negotiator Ambassador Gregg Doud.

Additional officials and technical experts from the Department of Commerce, Department of Treasury, United States Trade Representative, Department of Agriculture, and Department of Energy will also participate in the talks.  (link)

Yesterday in a discussion thread recognizing DPRK Vice-Chairman Kim Yong Chol, I noted the following: “The Trump administration is providing North Korea the first modern day opportunity to create an authentic version of itself“.  In essence, though it is difficult to describe, the Trump Doctrine has a clarity of purpose.

The nature of the Trump foreign policy doctrine, as it has become visible, is to hold manipulative influence accountable for regional impact(s), and simultaneously work to stop any corrupted influence from oppressing free expression of national values held by the subservient, dis-empowered, people within the nation being influenced.

There have been clear examples of this doctrine at work.  When President Trump first visited the Middle-East he confronted the international audience with a message about dealing with extremist influence agents. President Trump simply said: “drive them out.”

Toward that end, as Qatar was identified as a financier of extremist ideology, President Trump placed the goal of confrontation upon the Gulf Cooperation Council, not the U.S.

The U.S. role was clearly outlined as supporting the confrontation.  Saudi Arabia, Kuwait, Egypt, Bahrain and the United Arab Emirates needed to confront the toxic regional influence; the U.S. would support their objective.  That’s what happened.

Another example:  To confront the extremism creating the turmoil in Afghanistan, President Trump placed the burden of bringing the Taliban to the table of governance upon primary influence agent Pakistan.  Here again, with U.S. support.  Pakistan is the leading influence agent over the Taliban in Afghanistan; the Trump administration correctly established the responsibility and gives clear expectations for U.S. support.

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North Korean Vice-Chairman Kim Yong Chol, the second most powerful political official in the DPRK, visited President Trump at the White House today to deliver a letter from North Korean Chairman Kim Jong-un.  The topic was the ongoing dialogue between the U.S. and North Korea in advance of a meeting scheduled June 12th in Singapore.

It is important to note the body language, and the messages conveyed therein, between Kim Yong Chol, the emissary group and the U.S. leadership headed by President Trump and Secretary of State Mike Pompeo (video below).  After their two-hour meeting, President Trump and Secretary Pompeo delivered remarks to the press pool:

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Keep in mind, Kim Yong Chol also participated in meetings between Chairman Kim Jong-un and the primary influence agent, Chinese Chairman Xi Jinping.

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U.S. Secretary of State Mike Pompeo began the first meeting with North Korean emissary Kim Yong-chol today in New York.  Over the next two days the two leaders are anticipated to discuss terms of North Korean denuclearization and the possibility of a summit in Singapore between President Donald Trump and North Korean Chairman Kim Jong-un.

Pompeo arriving like a boss

Kim Yong-chol, is one of the most influential North Koreans outside of the Kim Jong-un family.  Premier Kim Yong Chol has been closely involved in with talks with South Korea and is the most senior DPRK official to set foot in the US since 2000.

Over the next two days Secretary Pompeo and Premier Kim Yong-chol are anticipated to discuss the granular details of North Korea giving up all nuclear weapons.  There is a great deal of responsibility on the shoulders of Pompeo to ensure clarity of expectations in advance of any further diplomatic meetings.

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Buried in a Wall Street Journal article outlining their shock and horror over President Trump following through with a Phase-I trade penalty of $50 billion, you find the following quote from Captain Obvious at Cornell University:

“The Trump administration is clearly signaling, ahead of Wilbur Ross’s trip to Beijing, that the gloves are off given China’s unwillingness to agree to a trade deficit reduction target or to make broader trade concessions,” said Eswar Prasad, a Cornell University professor of international trade. In addition, the “hardline stance may partly reflect the perception that China played a part in nearly derailing the Trump-Kim summit.” (link)

Gee, ya think?

The White House announced today it will clarify by June 15 a final list of $50 billion in imports from China that would be subject to tariffs of 25%, with the duties implemented “shortly thereafter.”  Additionally, future investment restrictions aimed at preventing Chinese acquisition of American technology will be announced by June 30.

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The 30-day extension on exemptions for Steel and Aluminum tariffs is scheduled to expire June 1st.  President Trump is positioning the U.S. Trade Team for a substantial reset. According to reports, U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystina Freeland held a terse meeting today over the tariffs and Canada’s unwillingness to close the NAFTA ‘fatal flaw‘ (loophole).

Both Canada and Mexico have structured key parts of their trade agreements to take advantage of their unique access to the U.S. market.  Mexico and Canada generate billions in economic activity through exploiting the NAFTA loophole.  China, Asia (writ large), and the EU enter into trade agreements with Mexico and Canada as back-doors into the U.S. market.  So long as corporations can avoid U.S. tariffs by going through Canada and Mexico they will continue to exploit this approach.

If the U.S. applies the same tariffs to Canada and Mexico we apply to all trade nations, then the benefit of using Canada and Mexico -by those trade nations- is lost. Corporations will no longer have any advantage, and many are likely to just deal directly with the U.S.  However, this would mean hundreds of billions in lost economic activity for Mexico and Canada.  It is the NAFTA fatal flaw.

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According to Yonhap News North Korea’s vice chairman of the Central Committee, Kim Yong-chol, is traveling to Beijing China for an operational briefing -and likely instructions- prior to heading to the U.S. where he might possibly be scheduled for a meeting with Secretary of State Mike Pompeo.

The travel plans highlight the influence strategy deployed by China and Chairman Xi Jinping ahead of the tenuously scheduled June 12 summit between the U.S. and North Korea in Singapore.  The U.S. negotiation team is currently in South Korea working on summit details amid discussions between all significant stakeholders.

Watch the U.S. -vs- China trade front closely.  U.S. Commerce Secretary Wilbur Ross is scheduled to arrive in Beijing on June 2nd to discuss current trade issues.  China is hoping to manipulate their North Korean proxies as trade leverage. Communist Chinese trade negotiators are notorious for their cunning manipulation.

BEIJING, May 29 (Yonhap) — A senior North Korean official arrived in Beijing on Tuesday apparently en route to the United States to hold preparatory talks over a possible summit between the leaders of the two countries.

The trip by Kim Yong-chol, a vice chairman of the Central Committee of the North’s ruling Workers’ Party, came as Washington and Pyongyang are holding working-level talks on the summit agenda and issues related to security and protocol.

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Two-and-a-half years ago Donald Trump, then a candidate, revealed his super secret strategy for dealing with North Korean nuclear weapons.  When asked “what would you do?”:

•Senator Ted Cruz: Blame Clinton, then load up South Korea and Japan with proactive nuclear weapons.
•Senator Marco Rubio: Blame Obama, then prepare for war via South Korea and Japan.
•Governor John Kasich: Tell Japan to strike the DPRK.
•Governor Jeb Bush: Launch a pre-emptive strike against Kim Jong-un, now.
•Businessman Donald Trump: Punch China in the nose.

Watch:

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Guess which approach worked?

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Interesting dynamics at play.   President Trump has announced via Twitter the U.S. advance team has arrived in North Korea to position for a possible June 12th summit between President Trump and North Korean Chairman Kim Jong-un.

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Yesterday South Korean Prime Minister Moon Jae-in and North Korean Chairman Kim Jong-un held an impromptu summit/meeting in the DPRK to display their unified smiles.

The influence agent, Chinese Chairman Xi Jinping, has been unusually quiet since President Trump asserted that Chairman Xi was the agent provocateur behind Kim Jong-un’s diplomatic bi-polarism.  Apparently, Chairman Xi did not anticipate President Trump being so public with the sunlight; and there’s no way Xi anticipated the economic consequences POTUS Trump outlined in the 232 Auto-Sector review.

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After the sandwich-maker summit the two Korean boys held hands and began skipping in circles around the park while the band played Ode To Joy. So goes the end of the latest chapter in the ongoing komance between Kim Jong-un and Moon Jae-in.

If you don’t believe it, just look at this quote directly from Reuters:

…”Kim said he feels closer to Moon after talking again.”

SEOUL (Reuters) – After a surprise meeting with North Korean leader Kim Jong Un on Saturday, South Korean President Moon Jae-in said he hopes that U.S. President Donald Trump keeps his planned meeting with Kim in June, Seoul-based news agency Yonhap reported Sunday. (link)

Additionally, North Korean leader Kim Jong Un expressed “his fixed will” on a possible June 12 summit with U.S. President Donald Trump in a meeting on Saturday with the president of South Korea, North Korea’s state news agency said. During what it called in-depth discussions, Kim and South Korea’s Moon Jae-in agreed to hold high-level talks between their two nations on June 1, news agency KCNA said.  (more)

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