There is a lot of banter amid the punditry class of trade and finance watchers surrounding a statement from Chinese Commerce spokesman Gao Feng claiming that U.S. and China negotiators were discussing a ‘phased’ roll-back of U.S. tariffs as part of a trade deal. However, a note of very strong caution should be applied.
On its face the Beijing-central claim is essentially an accurate portrayal of a dynamic long discussed. The tariffs were initially imposed to reset the outlook of China. In any negotiation with China a concession of current status is a non-starter. By natural disposition Beijing refuses to cede already won ground. This is their historic approach.
Therefore when engaging in any negotiations with China it is necessary to reset the baseline. China has to naturally feel losses; the economic landscape must be changed around them without their participation; in order for for them to consider negotiation.
The punishing U.S. tariffs accomplished this objective; the Beijing baseline status has been changed. The bamboo forest is significantly less than it was two years ago, and now China wants to recapture lost position. Their current status indicates exactly that dynamic.
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Posted in Big Government, China, Communist, Decepticons, Deep State, Donald Trump, Economy, media bias, Notorious Liars, President Trump, Professional Idiots, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA
